AI Spending Boom Continues Despite DeepSeek Emergence

Amidst concerns raised by DeepSeek's AI model, recent earnings reports indicate a sustained spending surge in the AI sector.

Alphabet's Massive Capital Expenditure Plan

Alphabet (GOOG) announced plans for a $75 billion capital expenditure in 2025, exceeding analyst estimates of $57.9 billion. This surge underscores the strong investment appetite for AI and data center infrastructure.

Nvidia's Continued Dominance

As a leading provider of AI chips, Nvidia (NVDA) stands to benefit from this spending boom. Despite DeepSeek's potential threat, Nvidia's shares surged over 4% following Alphabet's announcement.

Buy Rating for NVDA

Bank of America analyst Vivek Arya maintains a Buy rating on NVDA with a $190 price target, citing solid cloud capex intentions and Nvidia's market leadership in computing.

Mixed Performance for AMD

While AMD (AMD) shares declined due to its data center outlook, Stifel analyst Ruben Roy believes this is a near-term headwind. Long-term demand for AMD's chips remains robust, driven by hyperscaler spending on AI infrastructure.

Conclusion

Despite DeepSeek's emergence, the AI spending boom shows no signs of slowing down. Companies like Alphabet and Nvidia are actively investing in this transformative technology, creating significant opportunities for investors in the semiconductor industry.