Tech Giants’ AI Spending Surge Signals Robust Demand for Nvidia Chips

Microsoft's fiscal second-quarter capital expenditures reached $37.5 billion, surpassing Wall Street estimates of $36.7 billion, with two-thirds allocated to AI chips. Meta Platforms plans to invest up to $135 billion in 2026, doubling last year's spending and exceeding expectations by 20%. Both companies report that AI computing demand currently outstrips their supply capacity.

China's approval of Nvidia's H200 chips for ByteDance, Alibaba, and Tencent marks a significant development following previous restrictions. Semiconductor equipment Maker ASML and memory chip producer SK Hynix reported strong earnings, with ASML's order book and 2026 sales forecast exceeding analyst projections.

Nvidia shares closed at their highest level since early November, buoyed by these massive infrastructure investments. While the stock dipped 0.7% in after-hours trading, it remains near the top of its recent range. Microsoft's CFO Amy Hood acknowledged ongoing AI hardware constraints while confirming continued purchases from Nvidia and AMD alongside the company's proprietary Maia 200 chip development.