Nvidia Shares Rise on Positive Outlook for AI Server Buildout #

Nvidia shares saw a significant rise of over 11% following remarks from key customer Microsoft and rival chipmaker AMD, indicating continued growth in the AI server market. Microsoft’s CEO and CFO expressed their plans to increase investment in Nvidia-based infrastructure next year, with a substantial portion of their capital expenditures allocated to hardware. These statements alleviated concerns among investors about a potential slowdown in Nvidia’s AI sales due to competition among cloud providers. AMD also reported strong demand for its GPUs in the data center market and raised its AI chip sales forecast. Analysts believe these positive signals from Microsoft and AMD are favorable for Nvidia’s future prospects.