By Adam Clark

Nvidia was rising on Thursday after major technology customers Microsoft and Meta Platforms signaled they will continue to spend heavily on artificial-intelligence infrastructure.

Nvidia shares were up 3.5% at $112.73 in premarket trading. The stock fell 0.1% in Wednesday's session.

There were good signs for Nvidia as Microsoft reported late Wednesday that its third-quarter capital expenditures came to $16.7 billion, up from $11 billion in the same period a year ago, and said its full-year capex expectations were unchanged.

"We continue to expand our data center capacity...We continue to optimize and drive efficiencies across every layer, from DC [data-center] design to hardware and silicon to system software to model optimization, all towards lowering costs and increasing performance," Microsoft CEO Satya Nadella said on an earnings call.

Meta is also keeping up the pace of spending as it boosted its annual capex range to $64 billion to $72 billion, from $60 billion to $65 billion previously in its own report on Wednesday.

"Even with the capacity that we're bringing online in 2025, we are having a hard time meeting the demand that teams have for compute resources across the company," Meta Chief Financial Officer Susan Li told analysts.

Among other chip makers, Advanced Micro Devices was up 2.5% and Broadcom was gaining 3.0% in premarket trading.

Write to Adam Clark at adam.clark@barrons.com

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May 01, 2025 05:19 ET (09:19 GMT)

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