Nvidia shares surge on Big Tech’s US$650 billion AI-spending plan
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A worker stands atop a metro construction site near US chipmaker Nvidia Corporation's office in Bengaluru on January 7, 2026. Photo by Idrees MOHAMMED / AFP via Getty ImagesArticle contentNvidia Corp. shares soared Friday as investors snapped up shares of companies positioned to benefit from the vast sum of money that big technology firms have said they’ll spend on artificial intelligence infrastructure this year.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentShares of the chipmaker rose as much as 7.7 per cent, the biggest intraday jump since April 9, adding more than US$300 billion in market value. That snapped a five-day losing streak for Nvidia, which erased about US$500 billion amid a broader selloff as software and technology shares tumbled.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentAmazon.com Inc. sparked the rebound after the technology giant said during an earnings call that it plans to spend US$200 billion on data centers, chips and other equipment this year. All told, Amazon, along with Alphabet Inc., Meta Platforms Inc. and Microsoft Corp., are expected to shell out roughly US$650 billion for AI tools in 2026, about 60 per cent more than the prior year. While shares of the big AI spenders are still under pressure, investors are charging back into the stocks that are likely to be the builders of the AI complex.Article contentInvestorCanada's best source for investing news, analysis and insight.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“Demand is sky high,” Jensen Huang, Nvidia’s chief executive officer, said in an interview on CNBC Friday, calling it a “once in a generation infrastructure buildout.”Article contentArticle contentThose spending plans have lifted shares of companies spread across the wider AI infrastructure trade — the so-called “picks and shovels.” Other semiconductor stocks, like Broadcom Inc. and Marvell Technology Inc., also climbed — revenue for the group is set to reach a record US$1 trillion this year. Digital-storage companies, including Sandisk Corp., Western Digital Corp. and Seagate Technology Holdings Plc, saw their stocks each jump more than five per cent.Article contentArticle contentCloud-services provider CoreWeave Inc. gained roughly 20 per cent, the most since December. Companies that make power equipment and power data centers, including Amphenol Corp., GE Vernova Inc. and Vertiv Holdings Co., were also advancing, alongside gains in nuclear, uranium and hydrogen-linked companies. Growth names, including Palantir Technologies Inc. and quantum computing companies joined the rally.Article contentRead More Big Tech to Spend US$650 billion this year Apple’s Cook vows to lobby lawmakers on immigration Article contentThe reversal comes after a sharp selloff in software shares weighed on the broader U.S. market this week after Anthropic PBC released a spate of new AI tools that threatened the business models of companies across the sector, adding to increasing investor concerns that AI would make them irrelevant. Those worries spread to the entire technology sector and in turn, the broader market.Article contentWith assistance from Subrat Patnaik and Neil CamplingArticle contentBloomberg.comArticle contentTrending Carney steers Canada away from U.S. with new auto strategy Autos Posthaste: Mortgage delinquencies more than quadrupled in this Canadian city with no relief on the horizon News Stellantis sells its stake in Windsor battery plant for just $100 in massive write-down on EV investments Commodities What RBC's partnership with Realtor.ca means for homebuyers Mortgages 'Bizarre' jobs report shows the major forces whipsawing Canada's economy, economists say Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Carney steers Canada away from U.S. with new auto strategy Autos Posthaste: Mortgage delinquencies more than quadrupled in this Canadian city with no relief on the horizon News Stellantis sells its stake in Windsor battery plant for just $100 in massive write-down on EV investments Commodities What RBC's partnership with Realtor.ca means for homebuyers Mortgages 'Bizarre' jobs report shows the major forces whipsawing Canada's economy, economists say Economy