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Title: Nvidia (NVDA) Stock: Microsoft and Meta AI Spending Boosts Chip Maker
Nvidia’s stock has jumped 4.2% in premarket trading following the earnings reports from Microsoft and Meta, which highlighted their aggressive spending plans on artificial intelligence (AI). This boost in demand is a significant positive development for Nvidia, as it serves as the preferred choice for training artificial-intelligence models.
Microsoft’s announcement that they will be ramping up GPU capacity in their infrastructure to support next-generation AI services has directly benefited Nvidia. The tech giant’s $80 billion fiscal year spending on data centers supports their Copilot, OpenAI, and other AI initiatives, with Nvidia chips playing a critical role.
Similarly, Meta’s increase in capex spending for AI infrastructure is a major positive for the company. The social media giant mentioned that they will be focusing on this multi-year investment priority, which will likely drive demand for high-performance chips like those offered by Nvidia.
Nvidia’s strong position in the AI market has led analysts to remain bullish on its prospects. With 35 out of 41 analysts rating NVDA a “Buy,” and an average 12-month price target of $165.22, it seems that Wall Street is confident in the company’s ability to maintain its growth trajectory.
With this increased demand for AI infrastructure, Nvidia’s H100 chips have become the go-to choice for companies like Microsoft and Meta. As these major cloud-computing companies continue to invest heavily in AI development, it is likely that Nvidia will see a significant increase in revenue.
The positive sentiment surrounding Nvidia has also had a ripple effect on other chip makers in the space. Advanced Micro Devices was up 2.7%, while Broadcom gained 2.9% in premarket trading.
Despite being valued at $2.6 trillion, Nvidia’s growth prospects are not limited by its valuation. The company remains poised to benefit from the continued adoption of AI technology across various industries.
Source: https://coincentral.com/nvidia-nvda-stock-microsoft-and-meta-ai-spending-boosts-chip-maker/
