Nvidia Stock Rises As Alphabet's AI Investment Boosts Semiconductor Sector: What's Going On?

NVIDIA Corp (NASDAQ:NVDA) shares are trading higher Wednesday as investors react to Alphabet Inc.’s (NASDAQ:GOOG)(NASDAQ:GOOGL) strong capital expenditure guidance, which exceeded analyst expectations and eased concerns about a slowdown in AI spending.

What To Know: Alphabet's fourth-quarter results, released Tuesday after market close, showed plans to spend $75 billion on capital expenditures in 2025, significantly above the expected $58 billion. This bolstered confidence in AI-related chipmakers, including Nvidia, as Alphabet remains a key buyer of AI hardware.

Broadcom Inc. (NASDAQ:AVGO) shares also gained on the news, as the company supplies AI accelerators to Alphabet.

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares declined after the company's latest earnings report, despite beating revenue and earnings expectations. AMD reported fourth-quarter revenue of $7.66 billion, above the estimated $7.53 billion, and adjusted earnings of $1.09 per share, slightly exceeding the forecasted $1.08 per share.

AMD’s data center segment led growth, with revenue surging 69% year-over-year to $3.9 billion. However, gaming revenue fell 59%, and embedded revenue declined 13%, weighing on overall performance. AMD expects first-quarter revenue of approximately $7.1 billion, representing around 30% year-over-year growth at the midpoint.

Despite its strong data center performance, AMD's stock fell in after-hours trading Tuesday as investors weighed concerns about weaker gaming and embedded segment revenue.

The broader semiconductor sector remains focused on Nvidia's upcoming earnings later this month, which will provide further clarity on AI-driven demand and the competitive landscape.

NVDA Price Action: Nvidia shares were up 5.15% at $124.76 at the time of publication Wednesday, according to Benzinga Pro.

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