NVIDIA (NASDAQ:NVDA) stock gained 3.5% Wednesday, bolstered by continued Capex spending boosts by hyperscalers and the ramping of its new Blackwell chip.
On its conference call Tuesday evening, Google-parent Alphabet (NASDAQ:GOOGL) said they would spend $75 billion in capex in 2025 versus prior analyst expectations of $58 billion.
"Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses. We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025," Alphabet said.
Other large NVIDIA clients, Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META), also said they would increase their budgets for AI infrastructure.
Shares of NVIDIA have been under pressure for the past few weeks after China AI upstart DeepSeek raised questions about overall capex budgets after releasing their AI model with a very minimal amount spent and using old NVIDIA chips. NVIDIA's stock is down 9% year-to-date.
In addition to Google's higher Capex spending, AI server maker and NVIDIA partner Supermicro (NASDAQ:SMCI) announced Wednesday the full production availability of its end-to-end AI data center Building Block Solutions, accelerated by the NVIDIA Blackwell platform.
"In this transformative moment of AI, where scaling laws are pushing the limits of data center capabilities, our latest NVIDIA Blackwell-powered solutions, developed through close collaboration with NVIDIA, deliver outstanding computational power," said Charles Liang, president and CEO of Supermicro.
All eyes will be fixated on NVIDIA going into the company's all-important earnings report on February 26th.