Nvidia Corporation closed Friday's trading session with a significant gain of 7.87%, finishing at $185.41 per share. The advance was part of a broad rebound across the semiconductor sector, fueled by announcements of increased capital investment from large technology companies.
AI Capex Fuels Rally
The stock's performance is widely viewed as a barometer for artificial intelligence infrastructure investment. Major cloud service providers, including Amazon, have signaled plans to substantially raise capital expenditures this year, with much of that spending directed toward data centers requiring advanced chips like those Nvidia produces. This sentiment propelled other chipmakers higher, with the Philadelphia Semiconductor Index climbing 5.7%.
"Demand for AI products remains robust, creating a support level where buyers re-enter the market," noted one investment strategist in comments to Reuters. However, some analysts caution that the rapid build-out carries risks, as the significant upfront costs may not see immediate financial returns.
Key Catalysts Ahead
Market participants are now focused on two imminent U.S. economic releases: the January jobs report and Consumer Price Index data. These figures could influence Federal Reserve policy expectations and treasury yields, which often impact high-growth technology stocks.
The primary event for Nvidia investors is the company's fourth-quarter fiscal 2026 earnings report, scheduled for February 25. The results and subsequent commentary will provide critical insights into AI demand trends, supply chain conditions, and the corporate outlook.
In after-hours trading, Nvidia shares edged down slightly by 0.12% to $185.19. The market's reaction when trading resumes on Monday will test whether Friday's optimistic momentum can be sustained.
