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NVIDIA Corporation NVDA stock gained nearly 2.5% on Thursday, buoyed by a renewed wave of optimism from two of its largest customers, Meta Platforms, Inc. META and Microsoft Corporation MSFT. Both tech giants reaffirmed, and in Meta Platforms’ case, raised their capital expenditure commitments toward AI infrastructure.
This resurgence of AI-related investment could mark a key turning point for NVIDIA stock, which has pulled back 27% from its 52-week high of $153.13 attained on Jan. 7, 2025. With the renewed optimism about AI investment, the question arises: Should investors rush to buy more, or is holding the stock the smarter move right now?
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AI Spending Spree Could Reignite Demand for NVIDIA’s Chips
Microsoft, a major cloud provider and longtime NVIDIA partner, confirmed during its third-quarter fiscal 2025 earnings call that it will maintain its massive $80 billion capital expenditure plan for AI data centers, with more than half of that directed toward U.S. operations.
Meanwhile, during its first-quarter 2025 earnings call, Meta Platforms increased its 2025 capital spending outlook to a range of $64-$72 billion, up from the prior $60-$65 billion range. The added spending will primarily go toward expanding data center capacity and AI infrastructure, both heavily reliant on NVIDIA’s high-performance graphics processing units (GPUs).
Meta Platforms’ CFO, Susan Li, made it clear that the CapEx bump is driven by AI ambitions and infrastructure upgrades. Similarly, Microsoft CFO Amy Hood indicated that fiscal 2026 investments will grow, albeit at a slower pace, and be more closely aligned with short-term revenue gains, implying accelerated AI workload deployments.
These commitments are strong signals that NVIDIA’s chips, especially its H100 and upcoming B100 GPUs, will remain in high demand as hyperscalers scale their AI platforms.
AI Boom Driving NVIDIA’s Financial Performance
NVIDIA’s products are at the center of the ongoing AI revolution, driving demand from hyperscalers, enterprises and cutting-edge startups alike. The data center end-market continues to be a powerhouse for NVIDIA. In the fourth quarter of fiscal 2025, revenues from the data center end-market grew 93% year over year to $35.58 billion and contributed 90.5% to the total sales.
AI-driven workloads, cloud computing expansion and increasing enterprise adoption of AI models have turned NVIDIA’s high-performance chips into a necessity rather than a luxury. With businesses aggressively investing in AI infrastructure, NVIDIA remains positioned at the heart of this technological transformation.