Nvidia shares jump on AI spending plans: Big Tech boosts budgets
Nvidia shares rose sharply to their highest level since April after major US technology companies confirmed large increases in AI infrastructure spending. Strong investment plans from Amazon, Microsoft, Alphabet, and Meta boosted confidence in long-term demand for chips. The rally also lifted other semiconductor, cloud infrastructure, and data center-related stocks across the market.
Nvidia shares rise
Nvidia shares recorded their best daily performance since April after clear signals from Big Tech on future AI spending. The stock closed sharply higher, adding more than $300 billion to the company’s market value in a single day. The move followed several days of losses linked to a wider selloff in technology stocks. Investors reacted to strong spending commitments made by leading US technology firms. These companies said they plan to sharply increase investment in AI infrastructure next year.
Other companies
Amazon played a major role in driving the rally. During its earnings call, the company said it plans to spend close to $200 billion in 2026 on AI-related infrastructure. This includes data centers, graphics chips, networking equipment, and custom silicon. Microsoft and Alphabet are also expected to invest more than $100 billion each next year. Meta continues to expand its data center footprint to support its AI products. Together, the four companies are expected to spend around $650 billion in 2026, nearly 60% more than last year. The focus is now on building systems at scale rather than testing new tools.
Nvidia’s role
Nvidia stands at the center of this spending cycle. Its chips are widely used to train and run large AI models across cloud platforms and enterprise systems. Unlike software firms, Nvidia earns revenue early in the AI cycle because its products are needed before applications are deployed. This helped separate Nvidia from the recent pressure on software stocks. While some investors worry about competition and pricing in AI software, demand for hardware remains strong. Every new data center needs chips, servers, and networking equipment. Nvidia’s newer Blackwell chips have added to confidence. The platform offers higher performance while using less power.
Broader market impact
The rally spread beyond Nvidia. Other semiconductor firms moved higher, along with companies linked to data storage and cloud infrastructure. Shares of power and cooling equipment makers also gained, as AI data centers require large and steady electricity supply. Analysts now expect global semiconductor revenue to approach $1 trillion in 2026. Much of that growth is linked to AI demand.