Nvidia’s shares have risen after Amazon announced plans to increase spending on artificial intelligence technologies by $105 billion. This announcement is part of a broader trend among tech giants, signaling robust investment in AI infrastructure. Nvidia is a key supplier of AI hardware and software, and the increased spending by Amazon and other major tech companies highlights the long-term growth potential within the AI sector.
This has catalyzed investor optimism, which is reflected in Nvidia’s recent stock performance. Bank of America has named Nvidia a “compelling” opportunity ahead of its upcoming earnings report on February 26.
Amazon boosts Nvidia with AI investments
Analysts predict a modest beat or inline sales guidance despite potential headwinds such as product transitions and China restrictions. The bank expects Nvidia to deliver favorable results in its fourth-quarter earnings call and has reiterated its buy rating, underscoring Nvidia as a top pick. “Expect Q4 EPS call to reassure on CY25 outlook,” the analysts noted.
With the confirmed spending plans of leading tech companies and the upcoming earnings report, investors are keen to understand whether now is the right time to buy Nvidia stock. The focus will be on Nvidia’s ability to capitalize on the increased demand for AI technology and maintain its competitive edge in the market. As always, investors should consider their own financial situation and consult with a financial advisor before making any investment decisions.
