Nvidia Stock Sees Gains Amid Positive Earnings Reports

Nvidia (NASDAQ: NVDA) Stock is experiencing an uptick on Thursday, boosted by a favorable overall market. The share price rose by 4.4% as of 1:15 p.m. ET. At the same time, the S&P 500 index was up 0.9%, while the Nasdaq Composite increased by 1.8%. Earlier in the session, Nvidia stock had peaked at a gain of 5.5%.

Microsoft and Meta Platforms released their quarterly results after yesterday’s market close. Strong performance and optimistic guidance from both companies are contributing to an increase in Nvidia’s valuation. Despite today’s rise, Nvidia stock remains down approximately 24% year-to-date.

Current Investment Potential in Nvidia Stock

Microsoft is known to be Nvidia’s largest customer, while Meta ranks as its second-largest client. The recent quarterly reports from these two giants strengthen the investment case for Nvidia stock. Both companies exceeded sales and earnings expectations, largely due to their investments in artificial intelligence technologies and services, signaling ongoing substantial spending on AI processors.

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In the third quarter of its current fiscal year, Microsoft reported non-GAAP (adjusted) capital expenditures (capex) of $16.75 billion, marking a 53% increase from the previous year. Analysts had anticipated capex to be around $16.37 billion.

Meta’s latest capex forecast also favors Nvidia investors. The social media company now predicts its capex for this year will range from $64 billion to $72 billion, an increase from its earlier estimate of $60 billion to $65 billion.

These significant capital expenditures from Microsoft and Meta underscore a strong focus on enhancing AI infrastructures. As Nvidia’s advanced processors are central to success in this sector, the new capex information diminishes concerns regarding recent reports of other tech corporations scaling back their data center investments. While Nvidia stock may continue to experience volatility with market changes, the long-term investment outlook remains promising.

Considerations for Future Investments

Analysts are closely monitoring these developments, considering them as part of a broader strategy for potential investment opportunities.

Randi Zuckerberg, a former director of market development at Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.