Nvidia and Broadcom shares experienced significant increases on February 5, 2025, following an announcement from Alphabet, the parent company of Google. Alphabet stated its intention to boost spending on artificial intelligence (AI), which is expected to benefit both chipmakers as they supply essential components for AI infrastructure.
- Nvidia and Broadcom shares surged Wednesday.
- Alphabet plans $75 billion AI spending.
- Strong relationship between Alphabet and Nvidia.
- Broadcom shares jumped nearly 6%.
- Other chip stocks also experienced gains.
- Arm and Qualcomm to report earnings soon.
Alphabet’s announcement included plans to allocate as much as $75 billion in capital expenditures this year, primarily focused on expanding its AI infrastructure, including servers and data centers. This move comes as demand for AI technology continues to grow, positioning Nvidia and Broadcom to capitalize on increased orders for their chips.
Key details from the announcement include:
- Nvidia shares rose approximately 4% to $123.43.
- Broadcom shares increased nearly 6% to $235.69.
- Other chip stocks, including Arm Holdings and TSMC, also saw gains.
Alphabet’s CEO, Sundar Pichai, emphasized the company’s commitment to maintaining a strong relationship with Nvidia, particularly after the recent introduction of Nvidia’s Blackwell platform for AI applications. This collaboration is expected to enhance Alphabet’s AI capabilities and drive further investments in technology.
In addition to Alphabet’s plans, other tech giants have also announced substantial spending on infrastructure. Meta Platforms indicated a budget of $60 billion to $65 billion for this year, while Microsoft projected $80 billion in spending for fiscal 2025. These Trends highlight a broader industry shift towards investing in AI and related technologies.
The surge in Nvidia and Broadcom shares reflects a strong market response to Alphabet’s investment plans in AI. As companies continue to prioritize AI technology, the demand for specialized chips from these manufacturers is likely to increase, solidifying their roles in the evolving tech landscape.
