Nvidia Reaches New Peak as Google Lifts Cloud Spending Forecast

July 25 - Nvidia NVDA hit a fresh intraday high Friday, edging up 0.5% to $174.53 in early trading, on track to close at a record if it holds. The GPU pioneer gained momentum after a 1.7% pop Thursday, as investors brace for a wave of tech earnings next week.

Wall Street sees Nvidia chips as the go?to for AI model training, and expectations remain lofty. Alphabet GOOGL underlined that demand by lifting its 2025 capital?expenditure forecast by 13% to $85 billion, signaling more server and data?center builds, including Nvidia's gear. While Google touts its custom TPUs, it still backs GPUs to meet broader cloud needs.

Ben Reitzes of Melius Research states that Google Cloud is currently capacity constrained but anticipates subsequent growth in the second half because Google can deploy more capacity. Such a dynamic would fuel a long-term market of Nvidia sales and other conglomerates, such as AMD AMD, which would be able to sustain an AI-fueled GPU demand.

As significant Nvidia reports are still ahead, its stocks might remain unstable, but the boom in AI infrastructure does not appear to have reached its limit.