Alphabet's announcement of a $75 billion capital expenditure plan for 2025 has provided a significant 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 capital expenditure, a 42% rise from the previous year, highlights the growing demand for AI capabilities and positions Nvidia favorably amid a competitive landscape where other tech giants are also ramping up their AI investments.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) experienced a slight decline, dropping 0.4% to $27.66 as of 7:00 AM on Wednesday, February 5.