Microsoft's announcement of increased capital expenditure plans for cloud and AI infrastructure has significantly impacted Nvidia's stock movement. The tech giant's commitment to investing $80 billion in AI-enabled data centers underscores the strategic importance of Nvidia's high-performance GPUs in the evolving AI landscape. Despite the emergence of cost-efficient AI models from China's DeepSeek, Microsoft's reaffirmed investment plans suggest a continued demand for Nvidia's advanced GPU technology. This development has bolstered investor confidence in Nvidia's role as a key supplier in the AI and cloud computing sectors, even as the stock experienced a decline during regular trading hours.
The Direxion Daily NVDA Bear 1X Shares (NVDD) ETF, which inversely tracks Nvidia's performance, saw a rise of 1.40% to $6.52 as of 6:00 PM on Wednesday, January 29.