NVIDIA, Broadcom Surge on Alphabet's AI Spending Plans
NVIDIA (NVDA) and Broadcom (AVGO) shares rallied on Wednesday after Google parent Alphabet (GOOGL) announced plans to increase investment in artificial intelligence (AI).
Alphabet revealed its intention to allocate up to $75 billion in capital expenditures this year, primarily for expanding AI infrastructure. CEO Sundar Pichai emphasized the company's commitment to maintaining a "strong relationship" with NVIDIA.
NVIDIA is expected to benefit from Alphabet's plans, as Pichai noted the company's ongoing collaboration with NVIDIA. Following the recent announcement of Alphabet's first customer using NVIDIA's Blackwell platform, the news came amidst other major tech companies' significant infrastructure investments.
Broadcom, a supplier of custom AI chips to technology giants including Alphabet and Meta, also experienced a rise in share price. Intraday trading on Wednesday saw Broadcom's shares increase by nearly 6% to $235.69, while NVIDIA gained approximately 4% to $123.43.
Other chip stocks and entities associated with NVIDIA, such as Arm Holdings (ARM) and TSMC (TSM), also witnessed gains. Arm is scheduled to report earnings alongside Qualcomm (QCOM) after the market closes on Wednesday.