Nvidia stock pops as Big Tech spending boom cools DeepSeek fears
Published On Feb 5, 2025, 2:15 PM
Nvidia's stock surged over 4% following a period of skepticism related to AI spending amidst competition from a new AI model from DeepSeek. Investor fears subsided as major tech companies, including Alphabet, announced substantial capital expenditure plans for AI and data centers in 2025, projected to be much higher than analysts' estimates. This indicates sustained investment in Nvidia's products, particularly in AI infrastructure. Analysts have reiterated their support for Nvidia stock, with Bank of America maintaining a 'Buy' rating and a price target of $190.
Stock Forecasts
NVDA
Positive
With the reaffirmation of strong capex spending in the tech sector, particularly in AI, and no significant changes in demand for Nvidia's products reported by its major clients, the outlook for Nvidia stock appears positive. Additionally, competitor AMD has faced specific headwinds, leaving Nvidia well-positioned in the AI chip market.
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