Nvidia Stock Surges as AI Momentum Builds from Both Silicon Valley and Washington
Shares of Nvidia (NASDAQ: NVDA) were on the rise again Thursday morning, buoyed by a surge in optimism around artificial intelligence. The stock climbed 1.1% in premarket trading to $172.64, following a 2.3% gain on Wednesday. With this move, Nvidia is approaching its all-time high closing price of $173, hit just last week.
A combination of public and private sector support for AI development fuels the gains. Alphabet (NASDAQ: GOOGL), Google’s parent company, signaled its commitment to AI infrastructure by increasing its full-year capital expenditure forecast to $85 billion—up from $52.5 billion in 2024. A substantial portion of that spend is expected to go toward building and expanding data centers powered by Nvidia’s high-performance AI chips.
Nvidia’s momentum is also being driven by a policy tailwind from Washington. On Wednesday, the Trump administration unveiled a national “action plan” to bolster American dominance in artificial intelligence. Key elements of the initiative include making it easier for tech firms to build domestic data centers—an area where Nvidia’s hardware is a cornerstone.
Nvidia CEO Jensen Huang praised the initiative during a Fox News interview Wednesday, saying:
“What the president is announcing today is going to accelerate AI innovation in America. He’s going to enable [the] American tech stack to be proliferated around the world at an incredible rate.”
Huang, who was seated in the front row of the White House’s AI Summit, appeared to show strong alignment with the administration’s goals for AI expansion, emphasizing the role of American chipmakers in leading the next wave of global tech infrastructure.
Other semiconductor stocks also saw a lift. Advanced Micro Devices (NASDAQ: AMD) gained 1.2% in premarket trading, while Broadcom (NASDAQ: AVGO) rose 2.5%.
A Perfect Storm for Nvidia
With both increased corporate investment and supportive government policy aligning, Nvidia appears to be sitting in a sweet spot. The company has already been the poster child of the AI-driven tech rally over the past year, and these latest developments could provide further upside.
As the AI arms race heats up, Nvidia’s dominant position in GPU-based computing, combined with a surge in demand for AI infrastructure, places it at the center of one of the most powerful trends in global technology.