NVIDIA (NVDA) shares increased up to 4.9% Thursday morning before the market opened, the highest main chip stocks after Big Tech Leader Meta (META) and Microsoft (MSFT) reaffirmed their aggressive IA investment plans.
The actions of Fellow AI Chipmakers Advanced Micro Devices (AMD) and Broadcom (AVGO) jumped 2.6% and 2.8%, respectively. The supplier Nvidia Micron (MU), which manufactures advanced memory chips for its GPUs (graphic processing units), climbed 2.9% in prior trade.
At the end: April 30 at 4:00 p.m.
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The earnings follow the profits on the profits of the giants of Microsoft and Meta technology on Wednesday evening, which saw the companies assert – or in the case of META, to increase – their investments in the infrastructure of IA, while companies seek to increase the capacity of the data center to supply AI efforts.
Microsoft reiterated its expenditure plan of $ 80 billion to build data centers on AIWith more than half of these expenses to the United States. Meta, on the other hand, has increased its capital spending prospects for 2025, the forecast of spending will now be between $ 64 billion and $ 72 billion, against its anterior range of $ 60 billion and $ 65 billion.
“This updated prospect reflects additional investments in data centers to support our AI efforts as well as an increase in the expected cost of infrastructure equipment. The majority of our CAPEX in 2025 will continue to be directed to our core business, “said Susan Li Susan Li.
Microsoft’s financial director Amy Hood said: “We remain determined to invest against the solid demand signals we see for our services”, adding that his investment plans for his 2026 financial year, which begins in July, remain unchanged.
“We expect Capex to develop,” added Hood. “It will increase at a rate lower than the exercise ’25 and will include a greater mixture of short -term assets, which are more directly correlated with income than long -term assets. These investments as well as targeted execution which offers short -term value to our customers will ensure that we continue to lead by the cloud and the opportunity of the AI to come.”
Investors had been worried about a potential withdrawal of Microsoft AI investments, the company would have canceled some of its data center projects.
Microsoft and Meta are some of the largest NVIDIA customers, contributing to $ 20 billion and $ 9 billion respectively to the chip manufacturer’s income in 2024, respectively, according to a DA Davidson analysis.
Big Tech has entered the AI, with Big Tech’s three “hyperscalers” – Operators of massive data centers, including Google (Goog) and Amazon (AMZN) as well as Microsoft – and Meta set to spend north of $ 330 billion at most this year.
