Nvidia shares reached new heights on Friday following positive earnings reports from Meta Platforms and Amazon.com. These reports highlighted the tech companies' commitment to investing in artificial intelligence (AI) technology, with Nvidia's hardware playing a crucial role.
In premarket trading, Nvidia shares were up 1.4% at $639.23, and the stock closed on Thursday at a record high of $630.27, representing a 2.4% increase.
Meta revealed that its capital expenditure for the full year of 2024 is projected to be between $30 billion and $37 billion, an increase from its previous guidance of $30 billion to $35 billion just three months ago.
Commenting on Meta's investment plan, Mayuranki De, a research analyst at Global X, stated, "Meta's commitment to AI, demonstrated by its recently announced substantial investment plan, includes significant utilization of Nvidia chips to establish a powerful compute infrastructure for AI development."
Although Amazon did not provide specific figures, the company expects its capital expenditure to rise due to its own AI investments. Analysts anticipate Amazon's capital expenditure for 2024 to reach $59.9 billion compared to last year's $52.6 billion.
Nvidia's stock price surge reflects a broader upward trend in computing hardware providers. In premarket trading, Advanced Micro Devices saw a 2.1% increase, while Broadcom experienced a 1.1% increase. Additionally, S&P 500 futures rose by 0.6%, and Nasdaq 100 futures rose by 1.1%.
Year-to-date, Nvidia shares have risen by an impressive 27%, surpassing the modest gains of the S&P 500 (2.9%) and Nasdaq Composite (2.3%) as of Thursday's market close.
On Thursday, Nvidia's trading volume amounted to 36.9 million shares, slightly below its 65-day average of 42.4 million shares.
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