By Adam Clark
Nvidia was climbing early Friday as the market digested earnings reports from Google-parent Alphabet and chip rival Intel.
Strong demand for artificial intelligence technology looks to bode well for the leading AI semiconductor company.
Nvidia shares were up 1.2% at $107.70 in premarket trading. The stock rose 3.6% on Thursday.
Alphabet earnings on Thursday were being closely watched for any signs of a slowdown in spending on AI infrastructure. Nvidia investors should be reassured by the company holding its outlook for capital expenditure this year at $75 billion.
Alphabet executives said they finished the quarter with more demand for cloud-computing services than the company had capacity to serve and reiterated its "strong relationship" with Nvidia, even as it continues to improve its own in-house AI chips.
Meanwhile, the prospect of serious competition in AI chips from Intel still seems remote. While new Intel CEO Lip-Bu Tan said the company will aim to build "full stack AI solutions" -- spanning hardware, software and services -- of the type that Nvidia already offers, he didn't put a timeline on when it might bring a competitive AI processor to the market.
In January, Intel announced it wouldn't bring its next AI data center product Falcon Shores to market and would instead focus its efforts on developing another product called Jaguar Shores.
"We still have a Jaguar Shores product on our road map...We know that is a segment of the data center market that we're not competing in today, and we need a robust portfolio as all the customers are looking for alternatives," said Michelle Johnston Holthaus, CEO of Intel's Product business, on a call with analysts on Thursday.
Among other chip makers, Advanced Micro Devices was up 0.5% and Broadcom rose 0.5% in premarket trading.
Write to Adam Clark at adam.clark@barrons.com
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April 25, 2025 04:35 ET (08:35 GMT)
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