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Why is NVDY Up Today After Alphabet Investment

The YieldMax NVDA Option Income Strategy ETF (NVDY) closed up 4.81% at $19.60 on February 5th, driven by Nvidia's 5.02% surge to $124.61, as Alphabet's $75 billion capital expenditure plan for 2025 bolstered investor sentiment. Nvidia, a key supplier of AI processors, stands to benefit significantly from Alphabet's investment in expanding its AI infrastructure, which includes data centers and servers heavily reliant on advanced chips. This announcement underscores the growing demand for AI capabilities, with major tech companies like Microsoft and Meta also increasing their AI investments. Nvidia's strong financial metrics, including a robust Altman Z-Score of 63.02 and a Piotroski F-Score of 8, further reinforce investor confidence. The company's strategic position in the AI sector, coupled with its technological prowess, positions it well for continued growth.