Nvidia also topped earnings expectations with $1.30 per share versus projections of $1.26, while projecting fourth-quarter revenue of $65 billion plus or minus 2%, well above the $62 billion forecast. CEO Jensen Huang underscored continued strength in AI demand, noting that cloud GPUs are fully booked and Blackwell-related sales continue to expand rapidly.
How Strong Is AI Infrastructure Demand Right Now?
Nvidia’s data center revenue reached $51.2 billion, up 25% from last quarter and 66% from last year, reinforcing the scale of AI infrastructure spending by hyperscalers. Microsoft, Meta, Amazon and Google expect to commit more than $380 billion to AI infrastructure this year, with management teams across the group signalling continued investment rather than moderation.
During the earnings call, CFO Colette Kress highlighted practical returns from these deployments, noting Meta’s improved user engagement from AI recommendation engines, Anthropic’s expected $7 billion in annual revenue, and Salesforce’s 30% jump in engineering efficiency from AI-assisted coding. Traders see this as evidence that capital flowing into AI infrastructure is producing measurable payoffs.
Which Stocks Are Benefiting the Most?
Technology is leading sector performance with a 1.6% rise to 5,700.29. Nvidia shares are up 2.56% to $192.29, while Broadcom is gaining 4.77% and AMD is rebounding strongly. The enthusiasm extends to the “Magnificent Seven,” with Alphabet Class C up 3.31% and Tesla higher by 4.27%.
Gains are not limited to tech. Communication Services is advancing 1.95%, Energy is up 1.61%, and Consumer Discretionary is rising 1.51%.
Notable individual movers include Regeneron Pharmaceuticals, up 6.69%, and Diamondback Energy, gaining 3.62%, reinforcing the broad enthusiasm across sectors.
