AI chip stocks got a boost this week after hyperscale cloud computing companies reaffirmed their data center spending plans. Nvidia, Broadcom, and Marvell Technology moved higher after Amazon, Alphabet, Facebook parent Meta Platforms, and Microsoft announced significant investments in capital expenditures.
Amazon will spend $100 billion on capex this year, up 29% from last year’s figure. Alphabet plans to spend $75 billion in 2024, a 43% increase over the previous year. Microsoft is expected to spend $80 billion building artificial intelligence data centers, while Meta Platforms plans to invest as much as $65 billion.
Despite concerns about China’s DeepSeek’s low-cost AI system, hyperscalers are not changing their spending plans. The top AI chip stocks, including Nvidia, Broadcom, and Marvell, received supportive reports from investors.
Nvidia earned a positive note from Morgan Stanley, with analysts reaffirming the “top pick” buy rating on the stock. Analyst Joseph Moore cited continued near-term supply-demand mismatch as reasons to maintain investment trajectories.
Source: https://www.investors.com/news/technology/nvidia-ai-chip-stocks-rise-capex-plans