Nvidia stock surged by 4.5% on news of Microsoft's $80 billion AI infrastructure investment

From Nasdaq: 2025-01-03 16:47:25

Nvidia stock (NASDAQ: NVDA) surged by 4.5% on Friday, outperforming the S&P 500 and Nasdaq Composite indexes. This growth follows news of Microsoft’s plans to invest heavily in AI infrastructure by 2025, making Nvidia a prime beneficiary. With a 200% increase in share price over the past year, Nvidia remains a strong player in the AI chip market.

Microsoft’s announcement of an $80 billion investment in AI data centers for 2025 bodes well for Nvidia, which dominates the AI chip market with at least an 80% share. Analysts believe Nvidia could hold over 90% market share in key AI chip categories. This, combined with Microsoft’s increased spending, positions Nvidia favorably for future growth and profitability.

Considering Nvidia’s recent stock performance and Microsoft’s bullish outlook on AI infrastructure spending, many investors are wondering if Nvidia is a smart investment. While there is some speculation due to the cyclical nature of Nvidia’s business, the company’s strong market position and continued demand for AI hardware make it a compelling choice for long-term investors.

The Motley Fool Stock Advisor team has identified the top 10 stocks to buy now, but Nvidia didn’t make the list. However, since 2002, the Stock Advisor service has significantly outperformed the S&P 500, offering valuable insights and stock picks for investors. While past performance is not indicative of future results, Nvidia’s strong position in the AI chip market makes it a stock worth considering.



Read more at Nasdaq: Nvidia Stock Jumped Today — Is the Artificial Intelligence (AI) Leader a Buy for 2025?