Nvidia Stock Rises. Here's What Can Restart the Rally. — Barrons.com
Dow Jones Newswires ·
By Adam Clark
Nvidia was edging higher on Friday. The chip maker's stock looks to be taking a breather ahead of more tech earnings next week which will show the scale of investment in artificial-intelligence infrastructure.
Nvidia shares were up 0.4% at $174.40 in early trading. The stock rose 1.7% on Thursday and closed just below its all-time highs from last week.
Earnings from large technology companies are likely to be the main driver for the shares in the coming weeks. Google-parent Alphabet provided a positive signal for Nvidia when it increased its capital expenditure forecast for the year by 13% to about $85 billion in its earnings report Wednesday.
Notably, although Google has said it trained the latest version of its Gemini AI entirely on its own Tensor Processing Units, or TPUs — designed in partnership with Broadcom — its executives reaffirmed their commitment to also offering graphics-processing units (GPUs) to cloud-computing customers in an earnings call. Nvidia is the dominant GPU player.
"The increase in the full year capex guide reflects even more investments in servers, but also data center construction in order to meet cloud customer demand," wrote Melius Research analyst Ben Reitzes in a research note. "Google Cloud Platform is still capacity constrained after recording strong growth in 2Q25 (the second quarter), and we expect strong growth in 2H25 (second half of the year) as more capacity comes online and it ramps its installations of TPUs and [Nvidia's] Blackwells."
Now attention turns to Amazon.com, Microsoft, and Meta Platforms, all of which report next week. Amazon has said it expects $100 billion in capital spending for its full year, Microsoft has said it is on track to invest approximately $80 billion this year, and Meta has guided for annual capex of up to $72 billion.
Among other chip makers, Advanced Micro Devices was rising 1.7% and Broadcom was up 0.5% in morning trading.
Write to Adam Clark at [email protected]
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Dow Jones Newswires