Nvidia is jumping today: Artificial intelligence shares (AI) are a purchase?

• The strong quarterly results of the Microsoft and Meta platforms are raising the actions of Nvidia today.

• Services and technologies related to AI helped sales and power gains for Microsoft and Meta, and this is good news for Nvidia.

• Updates to Microsoft and Meta capital expenses suggest that the demand for processors and Nvidia is still very high.

Nvidia (NASDAQ: NVDA) The actions increase on Thursday in the middle of a bullish backdrop for the wider market. The price of the company’s shares increased by 4.4% from 13:15 ET. At the same time of negotiation of the day, the S&P 500 The index increased by 0.9% and the Nasdaq composite It had increased by 1.8%. Previously in the session, NVIDIA shares had increased by 5.5%.

Microsoft and Meta Platforms The quarterly results reported after the market was closed yesterday, and the strong results and guidelines of the two companies help increase the valuation of Nvidia today. But even with current earnings, Nvidia’s shares have still dropped by about 24% to the date to this writing.

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Microsoft is Nvidia’s largest customer and is said to be artificial intelligence (Ay) The second largest customer of the hardware leader. With their recent quarterly reports, Microsoft and Meta have helped to strengthen the Bull’s case for Nvidia’s actions. In addition to publishing sales and gains of gains strongly driven by AI technologies and services, both companies indicated that they continue to spend a lot on artificial intelligence processors.

Microsoft reported not gaap (Adjusted) Capital Expenses (CAPEX) of $ 16.75 million in the third quarter of its current fiscal exercise, which ended on March 31. CAPEX increased by 53% year -on -year in the period. Meanwhile, the analyst’s average estimate had requested that CAPEX reach $ 16.37 billion.

Meta Capex’s new forecast also provided good news for Nvidia’s investors. The social media giant forecasts that their CAPEX for this year is between $ 64 billion and $ 72 million, a great leap from their previous orientation for $ 60 and $ 65 million.

Microsoft and Meta’s capital expenses are very focused on expanding their AI infrastructure, and Nvidia’s advanced processors are the key hardware that bases success in space. CAPEX’s new data seem to silence the importance of recent reports that Microsoft and other technological giants were reducing their data center plans and suggests that the Demand for Hardware of the AI ​​is still very strong. Thus, while Nvidia actions will continue to see the volatility together with the movements for the broader market, the long -term investment thesis seems to be intact.