Good news continues to be poured into artificial intelligence (AI) chip manufacturers.
NVIDIA stock (NVDA 5.21 %) He won the ground on Wednesday and climbed 5 %. As of 12:42 pm, the eastern standard time, the stock is still increasing by 4.4 %.
The catalyst, which raised the artificial intelligence (AI) chip manufacturer, was in the news that strong demand for the processor would be more likely to continue.
It’s all about the data center
alphabet (Googl -7.29 %) (Goog -6.94 %) After the Tuesday market was over, we released the fourth quarter financial report, and investors were eager to understand how AI’s demand was progressing. The company reported that revenue increased 12 % year -on -year to $ 96 billion, with a 31 % increase of $ 2.15 per share.
The results were mainly in line with the expectations of Wall Street, but some investors were suffering from the results of the company’s crowdsgs. Google Cloud’s revenue increased by 30 % year -on -year to $ 12 billion, slightly below the $ 12.2 billion consensus.
The management explained that the shortage was a severe comp result because the AI was launched in the same period of the previous year. In addition, the company is in a hurry to provide more capacity online because Alphabet has a greater demand than AI provision.
What is this relationship with NVIDIA?
Alphabets are restricted by the number of data centers that they have and invested significantly to fix the situation. CFO Anat Ashkenazi plans to spend $ 75 billion in capital spending in 2025, and most of its spending will be “Technical Infrastructure including Servers and Data Center.”
The main supplier of the graphic processing unit (GPU) is used to supply the AI power of the data center, so NVIDIA will make direct profits from the increase in this expenditure. This will continue with the announcement of Microsoft (MSFT 0.22 %) This year, we plan to spend $ 80 billion in data centers, and we plan to make a profit to NVIDIA.
And next year’s revenue is only 28 times, and the price of NVIDIA shares is attractive.
SUZANNE FREY, an executive of Alphabet, is a member of the Motley Fool’s Board of Directors. Danny Vena has the position of Alphabet, Microsoft, and NVIDIA. Motley fools are recommended to work in Alphabet, Microsoft, and NVIDIA. Motley Fool recommends the following options: A $ 395 phone call at Microsoft in January 2026 and a $ 405 call to the short -term Microsoft in January 2026. Motley fools have a disclosure policy.
