Nvidia investors might have wanted bigger AI spending promises from Meta and Microsoft, but the stock still made gains early Thursday.
Nvidia shares, which are down 5% this month, rose about 1.3% before the market opened, doing better than some competitors. Intel fell 1%, Qualcomm dropped 5% after its earnings report, and Advanced Micro Devices went up 0.7%.
Before earnings season, many thought strong spending by Big Tech was key to supporting semiconductor stocks. But this week, the market has reacted in unexpected ways.
Microsoft decided to keep its 2026 spending plans the same, showing restraint that investors liked. Meta only raised the lower end of its spending range, now planning to spend $130 billion to $145 billion, up a bit from $125 billion to $145 billion. Alphabet, on the other hand, increased its spending plans more sharply to $195 billion to $205 billion from $180 billion to $190 billion, and its stock dropped as a result.
Even with these differences, the chip sector has not moved as many expected. The PHLX Semiconductor Index fell for five days in a row after Alphabet’s spending update, but the more cautious spending from Meta and Microsoft might help the index recover.
For Nvidia, the stock’s recent moves might not be tied to Big Tech earnings or AI spending at all. Right now, shares trade at a forward price-to-earnings ratio of 17.53, the lowest since April 2015, according to Dow Jones Market Data. Some investors think this price is too low to pass up much longer.
