Alphabet's announcement of a $75 billion capital expenditure plan for 2025 has provided a boost to Nvidia, as the tech giant plans to expand its AI infrastructure, heavily relying on advanced chips. This development is seen as a positive signal for Nvidia, given its ongoing partnership with Alphabet, which was emphasized during Alphabet's recent earnings call. The increased demand for AI capabilities, driven by competition from companies like Microsoft and Meta, as well as emerging players like DeepSeek, underscores the strategic importance of Nvidia's technology in supporting these ambitions.
The Graniteshares 2x Short NVDA Daily ETF (NVD) experienced a slight decline, dropping 0.64% to $32.77 as of 7:00 AM on Wednesday, February 5.