Financial Services Association, April 27 (Editor Zhao Hao) On Friday (April 26), US chipmaker Nvidia's stock price strengthened markedly. As of press time, it had risen nearly 5.5% to $872 per share, reaching a daily high of 883 US dollars.

This “Wall Street Star Stock” has surged nearly 15% this week, and is expected to record its best weekly performance since May last year, recovering most of last week's decline. The total market capitalization increased by $260 billion this week and is back above the $2 trillion mark.

According to the analysis, Nvidia's apparent rebound is mainly due to the fact that some of its biggest customers are investing more in artificial intelligence technology, and a large amount of expenditure will be used to buy AI chips, most of which are Nvidia's graphics processing units (GPUs), which is expected to continue to bring explosive sales growth to Nvidia.

Microsoft, Nvidia's largest customer, released its first quarter results report after the market yesterday. Benefiting from the outstanding performance of the cloud computing business, both revenue and EPS were better than market expectations. According to Microsoft, AI services contributed 7 percent to the increase in revenue from its Azure and other cloud services.

Microsoft CEO Nadella wrote in a statement that Microsoft Copilot is carefully planning a new era of artificial intelligence transformation to push every role and industry to achieve better business results. On the conference call, the CFO expects AI demand to exceed available production capacity in the near future and mentioned that the company has been increasing capital expenditure to ensure sufficient Nvidia GPUs are obtained.

At the same time, Google also released a comprehensive financial report that “crushed expectations” and initiated the first time in history to pay dividends and buy back an additional 70 billion US dollars of shares. Business metrics show that over the years, Google has invested a lot of money in the cloud business to catch up with AWS and Microsoft Azure, and has finally generated considerable profits.

Google CEO Pichai said, “Our leadership in AI research and infrastructure, and our global product footprint have prepared us for the next wave of AI innovation.” As of press release, Google-C is up more than 9%, and Microsoft is up more than 2%.

Earlier this week, Meta also promised a multi-billion dollar investment in artificial intelligence, and Tesla CEO Elon Musk also said that by the end of this year, the electric car maker will have 85,000 Nvidia H100 GPUs to train artificial intelligence.

As TSMC lowered its business prospects the week before, people were worried that the semiconductor industry was booming too much. The Bank of America analyst team wrote that the quarterly reports of Microsoft, Google, and Meta showed that under the impetus of AI infrastructure construction, there is still clear room for upward capital expenditure by tech giants.

GraniteShares Chief Revenue Officer Paul Marino said, “The future is artificial intelligence. I think if the biggest companies in the world invest tens of billions of dollars, then Nvidia must be a big winner.” Driven by Nvidia, the Philadelphia Semiconductor Index surged nearly 10% this week.

Marino said, “It's already obvious. Look at their budget and capital expenses, where is the money going? It could just be Nvidia because this company has the best chips.” Next week, Amazon, another major customer of Nvidia, will also release earnings reports.