Nvidia Stock Soars to New Heights as Big Tech Earnings Signal Success for Chip Maker
Nvidia’s stock is set to break records as positive earnings reports from Meta Platforms and Amazon.com ignite the technology sector. The financial results of these major tech companies highlight their commitment to investing in artificial intelligence (AI) technology, supported by Nvidia’s superior hardware.
In premarket trading, Nvidia shares have already risen by 1.4% to reach $639.23. The stock closed at a record high of $630.27 on Thursday, with a 2.4% increase.
Meta Platforms, previously known as Facebook, announced its projection of capital expenditure for the full-year 2024, estimating it to be between $30 billion and $37 billion. This outlook has increased from its previous guidance of $30 billion to $35 billion three months ago. Reflecting the company’s dedication to AI, Meta intends to invest billions in Nvidia chips to bolster its AI development capabilities.
While Amazon’s guidance was less specific, the company indicated an expected increase in capital expenditure due to its own AI investments. Analysts anticipate Amazon’s capex for 2024 to reach $59.9 billion, up from $52.6 billion in the previous year.
Nvidia’s stock is rising alongside other computing hardware providers. Advanced Micro Devices (AMD) has witnessed a 2.1% increase in premarket trading, while Broadcom has seen a 1.1% increase. S&P 500 futures have risen by 0.6%, and Nasdaq 100 futures by 1.1%.
So far this year, Nvidia’s shares have surged by 27%, outperforming the stock market indices, with the S&P 500 and Nasdaq up by 2.9% and 2.3% respectively, as per Thursday’s closing figures.
It is worth noting that Nvidia’s trading volume on Thursday was below its 65-day average, with 36.9 million shares traded compared to the average of 42.4 million shares.
These positive developments are set to reshape Nvidia’s future and position the company at the forefront of the AI revolution. As more tech giants invest in AI, the demand for Nvidia’s cutting-edge hardware chips will continue to grow, driving the company’s success and propelling its stock to new heights.
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