The financial reports of tech giants this quarter bring $NVIDIA (NVDA.US)$ a lot of good news. The largest customers of this chip manufacturer, including $Microsoft (MSFT.US)$and$Alphabet-A (GOOGL.US)$N/A.$Amazon (AMZN.US)$And.$Meta Platforms (META.US)$All of them have pledged to increase capital expenditures in the next year. Data shows that these four companies invested a total of 59 billion US dollars in data center equipment and other fixed assets in the third quarter, setting a quarterly record.

As of the time of this report, NVIDIA rose nearly 2% to $148.17, setting a new all-time high.

Fulton Breakefield Broenniman research director Mike Bailey said, "If you hold Nvidia stocks, then big buyers need to continue buying, and need to buy more every quarter. You can check the box."

The spending plans of these tech giants are exactly what investors who are bullish on nvidia's continuously rising stock price are looking forward to. The stock has nearly doubled in value this year, closing up 4.1% on Wednesday, hitting a historic high. After Trump won the US presidential election, the US stock market generally rose. The market cap of this ai chip manufacturer surpassed apple this week, once again becoming the company with the highest global market cap.

Before Nvidia released its financial report on November 20th, the financial reports of large tech companies also painted a rosy picture. Nvidia's stock price fell from its peak in June to its low in August, shrinking its market cap by nearly $900 billion, as there were doubts about its return on investment in the field of artificial intelligence, and Nvidia's new Blackwell chip was delayed. However, CEO Huang Renxun's assurance that Blackwell production is back on track, their output has rebounded, and the latest strong evidence of AI spending further alleviated people's concerns, leading to the stock price recovery.

Wall Street analysts are very optimistic about Nvidia, with 67 out of 75 analysts tracked by institutions rating the stock as "buy." They have been raising their expectations, with compiled data showing that in the past three months, they have increased profit forecasts for next year by about 10%. This helps lower Nvidia's valuation, with the company currently having a PE ratio of about 39 times, lower than last year's peak of over 60 times.

William Blair analysts Sebastian Naji and Jason Ader have raised their forecasts for the 2026 fiscal year, writing in a recent report: "Our confidence in Nvidia maintaining its leading position in the artificial intelligence infrastructure market will only strengthen." They state that artificial intelligence seems to be "full steam ahead."

UBS Wealth Management estimates that annual spending on artificial intelligence by large technology companies will increase by 50% this year, reaching $222 billion, and then grow by another 20% in 2025.

UBS Global Wealth Management Americas Chief Investment Officer Solita Marcelli said, "Microsoft, Alphabet, Amazon, and Meta Platforms together account for nearly half of all artificial intelligence spending, their strong balance sheets and investment willingness may continue to support the strong growth of AI spending." She mentioned that investors should "take advantage of recent volatility to build sufficient exposure to quality AI stocks."

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