Google parent Alphabet announced plans to spend up to $75 billion on capital expenditures this year, mostly on expanding its artificial intelligence infrastructure. This news sent shares of Nvidia and Broadcom surging.
Nvidia’s stock rose 4% after Alphabet CEO Sundar Pichai confirmed the company will maintain a “strong relationship” with the chipmaker. The announcement comes as Alphabet prepares to expand its AI capabilities, including servers and data centers.
Broadcom’s share price also jumped 6% following the news, driven by expectations of increased demand for custom AI chips designed by the company. Several other chip stocks rose in response, including Nvidia partners Arm Holdings and TSMC.
Source: https://www.investopedia.com/why-nvidia-broadcom-and-other-chip-stocks-are-surging-wednesday-8786442