Nvidia Shares Surge on Big Tech’s $650 Billion AI-Spending Plan

(Bloomberg) — Nvidia Corp. shares soared Friday as investors snapped up shares of companies positioned to benefit from the vast sum of money that big technology firms have said they’ll spend on artificial intelligence infrastructure this year.

Shares of the chipmaker rose as much as 7.7%, the biggest intraday jump since April 9, adding more than $300 billion in market value. That snapped a five-day losing streak for Nvidia, which erased about $500 billion amid a broader selloff as software and technology shares tumbled.

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Amazon.com Inc. sparked the rebound after the technology giant said during an earnings call that it plans to spend $200 billion on data centers, chips and other equipment this year. All told, Amazon, along with Alphabet Inc., Meta Platforms Inc. and Microsoft Corp., are expected to shell out roughly $650 billion for AI tools in 2026, about 60% more than the prior year. While shares of the big AI spenders are still under pressure, investors are charging back into the stocks that are likely to be the builders of the AI complex.

“Demand is sky high,” Jensen Huang, Nvidia’s chief executive officer, said in an interview on CNBC Friday, calling it a “once in a generation infrastructure buildout.”

Those spending plans have lifted shares of companies spread across the wider AI infrastructure trade — the so-called “picks and shovels.” Other semiconductor stocks, like Broadcom Inc. and Marvell Technology Inc., also climbed — revenue for the group is set to reach a record $1 trillion this year. Digital-storage companies, including Sandisk Corp., Western Digital Corp. and Seagate Technology Holdings Plc, saw their stocks each jump more than 5%.

Cloud-services provider CoreWeave Inc. gained roughly 20%, the most since December. Companies that make power equipment and power data centers, including Amphenol Corp., GE Vernova Inc. and Vertiv Holdings Co., were also advancing, alongside gains in nuclear, uranium and hydrogen-linked companies. Growth names, including Palantir Technologies Inc. and quantum computing companies joined the rally.

The reversal comes after a sharp selloff in software shares weighed on the broader US market this week after Anthropic PBC released a spate of new AI tools that threatened the business models of companies across the sector, adding to increasing investor concerns that AI would make them irrelevant. Those worries spread to the entire technology sector and in turn, the broader market.