As inflation fears gripped Wall Street, major U.S. stock indices tumbled, dragging down most semiconductor stocks. However, NVIDIA defied the trend, climbing nearly 1%.
On Friday, NVIDIA shares closed at $129.84, up 0.90%, pushing the company’s market capitalization to a staggering $318 billion.
This unexpected surge appears to be driven by Amazon’s latest earnings report, which revealed plans to invest $100 billion in artificial intelligence (AI) initiatives this year, surpassing last year’s $83 billion.
Notably, Amazon’s AI spending outpaces its tech rivals. Microsoft has allocated $80 billion for AI, while Alphabet, Google’s parent company, plans to invest $75 billion. Meta owns Facebook and has committed $65 billion to AI development.
The disclosure of these massive AI investments by U.S. tech giants seems to have fueled NVIDIA’s rise, allowing it to finish in positive territory despite the broader slump in semiconductor stocks.