Nvidia Stock Rises. It Got Good News From Google and Trump. — Barrons.com
Dow Jones Newswires ·
By Adam ClarkTae Kim
Nvidia stock was rising again on Thursday. The chip maker is set to benefit from increased investment by Google amid a drive by the Trump administration to bolster American artificial intelligence.
Nvidia shares rose 1.3% at $172.92 in early trading. The stock climbed 2.3% on Wednesday.
Google-parent Alphabet underlined spending on AI infrastructure on Wednesday when it increased its capital expenditure forecast for the year by 13% to about $85 billion in its earnings report. That compares with $52.5 billion in 2024. Plenty of that money is expected to go on data centers housing Nvidia hardware.
Usage of the latest reasoning AI models from OpenAI, Google, xAI, and Anthropic is exploding. AI agent capabilities are coming online, which will only increase the demand for AI computing resources.
Alphabet CEO Sundar Pichai said on Wednesday the company now processes over 980 trillion AI tokens per month, which is more than double the 480 trillion processed in May. An AI token is a piece of information that can be used as a measure of AI processing consumed.
Nvidia should also benefit from the Trump administration's commitment to make it easier for tech companies to build data centers to support AI technology, as part of an "action plan" for the sector issued Wednesday.
Nvidia CEO Jensen Huang attended the AI "action plan" event and said he was bullish on the ability of the United Stations to advance AI technology. "We are talking about America here. This is unquestionably the most technology rich country in the world. This is the most innovative country in the world," he said on the All-In podcast published on Wednesday at the event. The computer industry is the "single greatest industry the country has ever produced," he added.
Among other chip makers, Advanced Micro Devices was up 1.4% and Broadcom was rising 1.7% in early trading Thursday.
Write to Adam Clark at [email protected]
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Dow Jones Newswires