NVIDIA (NVDA) Stock Rises as Intel Earnings Boost Chip Sector

TLDR

• NVDA shares rose 0.7% to $183.38 in premarket trading on Friday as the broader semiconductor sector gained ground
• Intel’s strong quarterly results and optimistic forecast pushed its stock up nearly 8%, lifting sentiment across the chip industry
• Wall Street predicts cloud computing companies will boost capital spending by 63% in 2025 compared to 2024 levels
• NVIDIA expects AI data center spending to reach $600 billion in 2025 and climb to $3-4 trillion by 2030
• Major banks are preparing a $38 billion debt offering for Oracle’s data center projects, raising questions about leverage in AI infrastructure

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NVIDIA shares climbed in early Friday trading alongside gains across the semiconductor sector. The stock moved up 0.7% to $183.38 before the market opened.

NVIDIA Corporation, NVDA

Other chip makers joined the rally. Advanced Micro Devices rose 2.4% in premarket trading. Broadcom gained 1.9% during the same period.

Intel’s quarterly results appeared to boost the sector’s mood. The company reported strong numbers and said semiconductor demand would exceed supply through next year. Intel shares jumped nearly 8% in premarket hours.

NVIDIA previously announced a $5 billion investment in Intel. The deal calls for Intel to manufacture custom central processing units for NVIDIA’s AI infrastructure platforms.

The AI chip market shows no signs of slowing down. Cloud computing giants are expected to increase capital expenditures by roughly 63% this year versus 2024. That’s according to Wall Street forecasts.

Data Center Spending Projections

NVIDIA has provided guidance on future AI infrastructure spending. The company estimates data center capital expenditures will hit $600 billion in 2025. By 2030, that figure could reach $3 trillion to $4 trillion.

When a data center costs $50 billion to build, NVIDIA receives about $35 billion of that total. The company maintains a commanding market share in AI chips.

Data centers take years to construct. When hyperscalers announce new projects, NVIDIA won’t book the revenue immediately. These customers typically contact NVIDIA years before they need the actual chips.

Debt Financing Concerns

Some analysts are watching the growing use of debt to fund AI projects. Major banks are arranging a $38 billion debt package for Oracle’s cloud computing data centers. Bloomberg first reported the news.

Most AI infrastructure remains funded through cash flows. However, debt issuance by AI-related companies has increased recently.

Looking ahead to 2026, analysts project continued growth. If NVIDIA maintains its 50% profit margin and trades at 40 times earnings, the stock could reach $241 by late 2026. That assumes data center spending grows at the projected 42% annual rate.

For fiscal 2026 ending in January, Wall Street expects NVIDIA to generate about $207 billion in revenue. If growth continues at the pace of data center expansion, fiscal 2027 revenue could hit $294 billion.

NVIDIA currently holds a market cap of $4.38 trillion at a stock price around $180. The company has delivered strong returns for three consecutive years. In 2023, shares rose 239%. In 2024, they climbed 171%. Through 2025, the stock is up 34% year to date.

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