TLDR
- NVDA stock rose 0.7% to $183.38 in premarket trading Friday
- Intel’s positive earnings report boosted the entire semiconductor sector
- Cloud computing capital spending expected to increase 63% in 2025
- NVIDIA projects AI data center investments reaching $600 billion this year
- Analysts forecast potential stock price of $241 by end of 2026
NVIDIA stock moved higher in early Friday trading as positive sentiment spread across the semiconductor industry. Shares increased 0.7% to $183.38 before the opening bell.
The chip sector saw broad gains. AMD stock jumped 2.4% in premarket hours. Broadcom shares climbed 1.9% during the same period.
Intel’s quarterly earnings appeared to lift the entire industry. The company reported strong results and forecast that chip demand would outpace supply into 2026. Intel stock surged nearly 8% in premarket trading.
NVIDIA and Intel have a partnership worth $5 billion. Under this arrangement, Intel will manufacture custom processors for NVIDIA’s AI infrastructure systems.
AI Spending Powers Growth
The AI chip boom shows no signs of cooling. Wall Street analysts project that major cloud computing companies will raise capital expenditures by 63% this year compared to 2024.
NVIDIA has outlined its expectations for data center spending. The company forecasts $600 billion in AI infrastructure investments for 2025. That number could climb to $3 trillion or $4 trillion by 2030.
The company captures a large portion of each data center project. For every $50 billion facility, NVIDIA typically receives around $35 billion in chip orders.
These projects take years to complete. Customers reach out to NVIDIA well in advance to secure their chip supply. This gives the company clear visibility into future demand.
Stock Price Projections
Wall Street expects NVIDIA to generate $207 billion in revenue for fiscal 2026. If data center spending grows at the projected 42% annual rate, fiscal 2027 revenue could reach $294 billion.
Analysts suggest the stock could hit $241 by late 2026. This assumes NVIDIA maintains its 50% profit margin and trades at 40 times earnings. The company currently holds a $4.38 trillion market cap.
NVIDIA has delivered strong performance for three straight years. The stock rose 239% in 2023 and 171% in 2024. Year to date in 2025, shares are up 34%.
Financing Questions Emerge
Some observers are monitoring increased debt usage in AI infrastructure projects. Major banks are arranging a $38 billion debt package for Oracle’s data center expansion.
Most AI spending still comes from cash flows. However, debt issuance by technology companies has picked up recently. Garrett Melson from Natixis Investment Managers called this development a potential warning sign worth watching.
Intel’s optimistic outlook reinforced confidence in sustained chip demand. The company said semiconductor supply constraints would continue through next year as orders remain strong.
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