Nvidia Corp. shares soared on Friday as investors responded enthusiastically to the massive AI infrastructure spending plans unveiled by major tech giants. The surge came after Amazon announced plans to invest $200 billion this year on data centers, chips, and other equipment. This investment, combined with similar expenditures from Alphabet, Meta, and Microsoft, totals approximately $650 billion for 2026, marking a 60% increase from the previous year.

The news has sparked a frenzy of buying in companies expected to benefit from this AI boom. Nvidia, as a key supplier of the necessary hardware, saw its shares jump by 7.92%, while other semiconductor stocks like Broadcom and Marvell also experienced significant gains. The AI infrastructure sector, often referred to as the “picks and shovels” of the industry, is set to reach record revenues of $1 trillion this year.

Fact: Nvidia reported revenue of $6.91 billion in its most recent quarterly earnings.

This rally in Nvidia and related stocks reflects a shift in investor confidence, following a recent selloff in software shares. The concerns stemmed from the release of new AI tools by Anthropic PBC, which threatened existing business models. Despite this, the market is now focusing on the companies that will build and support the AI infrastructure, signaling a significant shift in tech investment priorities.