Nvidia Shares Surge Following Major AI Investment Announcements
Shares of Nvidia Corporation experienced a significant surge on Friday, climbing as much as 7.7 percent in intraday trading. This marked the chipmaker's most substantial single-day gain since April 9, adding more than US$300 billion to its market valuation. The dramatic increase effectively ended a five-day losing streak that had previously erased approximately US$500 billion from Nvidia's market value amid broader technology sector declines.
Big Tech's Massive AI Spending Plans
The stock rebound was primarily driven by investor enthusiasm surrounding major technology companies' ambitious artificial intelligence infrastructure spending plans for 2026. According to recent announcements and earnings calls, industry giants including Amazon.com Inc., Alphabet Inc., Meta Platforms Inc., and Microsoft Corp. are collectively expected to allocate roughly US$650 billion toward AI tools and infrastructure this year. This represents an increase of approximately 60 percent compared to their 2025 AI investments.
Amazon specifically revealed during its earnings call that it plans to spend US$200 billion on data centers, semiconductor chips, and related equipment throughout 2026. While shares of these major AI spenders continue to face some market pressure, investors have demonstrated renewed confidence in companies positioned to benefit from the massive infrastructure buildout.
Broader Market Impact and Industry Response
The positive momentum extended beyond Nvidia to numerous companies across the artificial intelligence ecosystem. Other semiconductor manufacturers, including Broadcom Inc. and Marvell Technology Inc., also experienced share price increases. Industry analysts project that semiconductor revenue could reach a record US$1 trillion this year, reflecting the unprecedented demand for AI-related components.
Digital storage companies witnessed particularly strong performance, with Sandisk Corp., Western Digital Corp., and Seagate Technology Holdings Plc each seeing their stock prices jump more than five percent. Cloud-services provider CoreWeave Inc. gained approximately 20 percent, marking its most significant increase since December.
Companies specializing in power equipment for data centers, including Amphenol Corp., GE Vernova Inc., and Vertiv Holdings Co., advanced alongside gains in nuclear, uranium, and hydrogen-linked companies. Growth-oriented technology firms such as Palantir Technologies Inc. and various quantum computing companies also joined the market rally.
Executive Commentary and Market Context
Nvidia CEO Jensen Huang characterized the current environment as a "once in a generation infrastructure buildout" during a Friday interview on CNBC. Huang emphasized that "demand is sky high" for AI-related technologies and infrastructure components.
The market reversal comes after a week of significant pressure on software shares, which had weighed on broader U.S. market performance. Concerns emerged following Anthropic PBC's release of new AI tools that some investors feared could disrupt existing business models across the technology sector. These anxieties had spread throughout the technology industry and contributed to broader market declines earlier in the week.
Investors appear to be shifting their focus toward companies positioned as the "picks and shovels" of the AI revolution—those providing essential infrastructure, components, and services rather than developing end-user AI applications. This strategic repositioning reflects growing confidence in the long-term sustainability of AI infrastructure investments despite ongoing volatility in software and application-focused technology stocks.
