Microsoft's announcement of increased capital expenditure plans for cloud and AI infrastructure has positively influenced Nvidia's stock, as the tech giant's commitment to investing heavily in AI infrastructure suggests a continued demand for Nvidia's high-performance GPUs. Despite the emergence of China's DeepSeek and its cost-efficient AI models, Microsoft's substantial capex plans, including $80 billion for AI-enabled data centers, have bolstered Nvidia's position as a key supplier in the AI and cloud computing sectors. This strategic move by Microsoft underscores the ongoing need for advanced GPU technology, providing a boost to Nvidia's stock as investors anticipate sustained demand for its cutting-edge chips.
The GraniteShares 2x Long NVDA Daily ETF (NVDL) experienced a decline, dropping 5.13% to $53.96 at 6:00 PM on Wednesday, January 29.