Why Is Nvidia Stock Surging Today?
As of May 1, 2025, Nvidia’s stock (NASDAQ: NVDA) is trading at $112.57 shortly after open, reflecting a 3.65% increase in premarket trading.
This surge follows robust earnings reports from Microsoft and Meta Platforms, both of which have announced substantial investments in artificial intelligence (AI) infrastructure.
Here’s why Nvidia stock surged into pre-market and at open this morning:
1. Microsoft and Meta’s AI Investment Plans
Microsoft reported a 33% year-over-year increase in Azure and other cloud services revenue, totaling $42.4 billion. The company plans to spend $80 billion on AI infrastructure in fiscal 2025. Similarly, Meta Platforms raised its full-year capital expenditures forecast to a range of $64 billion to $72 billion, attributing the increase to heightened AI investments. These commitments have bolstered investor confidence in Nvidia, a key supplier of AI chips to both companies.
2. Nvidia’s Dominance in AI Hardware
Nvidia continues to lead the AI chip market, with its GPUs being integral to AI research and applications. The company’s Blackwell architecture, announced in March 2024, includes the B100 and B200 datacenter accelerators, designed for the generative AI era. Despite a design flaw reported in October 2024, which has since been fixed, the entire 2025 production of Blackwell silicon was already sold out by November 2024.
3. Market Sentiment and Analyst Outlook
Despite a 20% decline in Nvidia’s stock earlier this year due to U.S. export controls affecting its China sales, recent developments have improved market sentiment. Analysts remain optimistic about Nvidia’s long-term prospects, citing the company’s central role in AI infrastructure and the anticipated growth in AI demand.
Nvidia Stock Metrics
- Current Price: $112.57 USD at 9:37 a.m. on May 1, 2025
- 24-Hour Change: +3.65%
- Intraday High: $114.45 USD
- Intraday Low: $112.57 USD
- Volume: 8,543,124 shares
Nvidia Forward Outlook
Nvidia is scheduled to report its first-quarter financial results on May 28, 2025. Investors will be closely watching for updates on the company’s performance, particularly in light of the recent AI investment announcements from major tech companies.
Analysts anticipate that continued demand for AI infrastructure will positively impact Nvidia’s earnings and stock performance.