Should You Hold Nvidia Stock As Meta Microsoft Double Down On Ai

MSFT Quick QuoteMSFT NVDA Quick QuoteNVDA META Quick QuoteMETA NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) stock gained nearly 2.5% on Thursday, buoyed by a renewed wave of optimism from two of its largest customers, Meta Platforms, Inc. (META Quick QuoteMETA - Free Report) and Microsoft Corporation (MSFT Quick QuoteMSFT - Free Report) . Both tech giants reaffirmed, and in Meta Platforms’ case, raised their capital expenditure commitments toward AI infrastructure. This resurgence of AI-related investment could mark a key turning point for NVIDIA stock, which has pulled back 27% from its 52-week high of $153.13 attained on Jan. 7, 2025.

With the renewed optimism about AI investment, the question arises: Should investors rush to buy more, or is holding the stock the smarter move right now? Microsoft, a major cloud provider and longtime NVIDIA partner, confirmed during its third-quarter fiscal 2025 earnings call that it will maintain its massive $80 billion capital expenditure plan for AI data centers, with more... operations. Meanwhile, during its first-quarter 2025 earnings call, Meta Platforms increased its 2025 capital spending outlook to a range of $64-$72 billion, up from the prior $60-$65 billion range. The added spending will primarily go toward expanding data center capacity and AI infrastructure, both heavily reliant on NVIDIA’s high-performance graphics processing units (GPUs). NVIDIA Corporation NVDA stock gained nearly 2.5% on Thursday, buoyed by a renewed wave of optimism from two of its largest customers, Meta Platforms, Inc.

META and Microsoft Corporation MSFT. Both tech giants reaffirmed, and in Meta Platforms’ case, raised their capital expenditure commitments toward AI infrastructure. This resurgence of AI-related investment could mark a key turning point for NVIDIA stock, which has pulled back 27% from its 52-week high of $153.13 attained on Jan. 7, 2025. With the renewed optimism about AI investment, the question arises: Should investors rush to buy more, or is holding the stock the smarter move right now? Microsoft, a major cloud provider and longtime NVIDIA partner, confirmed during its third-quarter fiscal 2025 earnings call that it will maintain its massive $80 billion capital expenditure plan for AI data centers, with more...

operations. Meanwhile, during its first-quarter 2025 earnings call, Meta Platforms increased its 2025 capital spending outlook to a range of $64-$72 billion, up from the prior $60-$65 billion range. The added spending will primarily go toward expanding data center capacity and AI infrastructure, both heavily reliant on NVIDIA’s high-performance graphics processing units (GPUs). Meta Platforms’ CFO, Susan Li, made it clear that the CapEx bump is driven by AI ambitions and infrastructure upgrades. Similarly, Microsoft CFO Amy Hood indicated that fiscal 2026 investments will grow, albeit at a slower pace, and be more closely aligned with short-term revenue gains, implying accelerated AI workload deployments. Written by Zacks Equity Research for Zacks->

Chicago, IL – May 5, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. NVDA, Meta Platforms, Inc. META and Microsoft Corp. MSFT.

Here are highlights from Friday’s Analyst Blog: NVIDIA Corp.stock gained nearly 2.5% on Thursday, buoyed by a renewed wave of optimism from two of its largest customers, Meta Platforms, Inc. and Microsoft Corp.. Both tech giants reaffirmed, and in Meta Platforms' case, raised their capital expenditure commitments toward AI infrastructure. This resurgence of AI-related investment could mark a key turning point for NVIDIA stock, which has pulled back 27% from its 52-week high of $153.13 attained on Jan. 7, 2025.

With the renewed optimism about AI investment, the question arises: Should investors rush to buy more, or is holding the stock the smarter move right now? NVIDIA’s stock jumped nearly 2.5% recently, fueled by renewed confidence from Meta Platforms and Microsoft, two of its biggest customers. Both companies have either maintained or increased their capital expenditure for AI infrastructure, signaling ongoing demand for NVIDIA’s GPUs. Despite a 27% pullback from its 52-week high, NVIDIA remains a key player in AI hardware. The key question for investors is whether to buy more shares now or simply hold. Microsoft confirmed it will stick with its massive $80 billion capital expenditure plan for AI data centers, with more than half focused on U.S.

operations. Meta Platforms raised its 2025 capital spending forecast to $64-$72 billion, up from $60-$65 billion, mainly to expand AI infrastructure and data center capacity. Both companies rely heavily on NVIDIA’s high-performance GPUs, like the H100 and the upcoming B100 models. Meta’s CFO, Susan Li, emphasized that this spending increase is AI-driven. Microsoft’s CFO, Amy Hood, indicated that while fiscal 2026 investments will grow more moderately, they will focus on projects with quicker revenue impact. These commitments suggest that NVIDIA’s chips will remain in strong demand as these hyperscalers expand their AI platforms.

NVIDIA is at the heart of the AI boom, with demand coming from large-scale cloud providers, enterprises, and startups. Its data center segment saw revenue surge 93% year-over-year to $35.58 billion in Q4 of fiscal 2025, representing over 90% of total sales. AI workloads, cloud expansion, and enterprise adoption have made NVIDIA’s GPUs essential for modern computing. Financial results reflect this strength: revenues rose 78% year-over-year in Q4 fiscal 2025, and non-GAAP earnings per share climbed 71%. The company’s guidance for Q1 fiscal 2026 projects $43 billion in revenue, a huge jump from $26 billion a year earlier. Analysts forecast revenue growth of 48% for fiscal 2026 and 24% for fiscal 2027, with earnings rising 42% and 27% respectively.

Nvidia (NVDA) hit a new high Thursday, but the latest reports about its China H20 chip cast some uncertainty on the stock even as a trade deal between China and the U.S. may be drawing near. Shares are on course to rise 15% for July. Trade talks between the U.S. and China resumed on Monday. Treasury Secretary Scott Bessent said…

12/30/2025 Dow Jones AI giant Nvidia stock hit an early buy point in recent sessions after shares bullishly regained their 50-day... 12/30/2025 Dow Jones AI giant Nvidia stock hit an early buy... Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Get market updates, educational videos, webinars, and stock analysis. In the early trading session on Thursday, shares of Nvidia soared by 4.3%, propelling the entire semiconductor sector after both Meta and Microsoft announced plans to continue aggressive investments in AI. Other AI chipmakers did benefit as well, with Advanced Micro Devices (AMD) up 1.3% and Broadcom climbed 2.4%.

Nvidia supplier Micron (MU), which produces memory chips for Nvidia’s high-end GPUs, added 2.7% according to News.Az reports. This boost followed post-earnings announcements by Meta and Microsoft late on Wednesday, which revealed their intention to increase spending on AI infrastructure for scaling up data center capacities in a race to meet their... Meta updated its 2025 capital spending forecast to range between $64 billion and $72 billion, up from the prior forecast of $60 billion to $65 billion. The additional spending will be for data center capacity expansion and AI enhancements. Meta CFO Susan Li said, “This updated outlook reflects additional data center investments to support our AI efforts as well as an increase in the expected cost of infrastructure hardware.

The majority of our CapEx in 2025 will continue to be directed to our core business.” Microsoft, on the other hand, maintains its long-standing commitment to spend $80 billion proving AI-powered data centers, claiming that somewhat more than half of that expenditure would go to projects in the U.S. Microsoft’s CFO Amy Hood said:

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