Nvidia shares surged 7.2% on Friday to close at a record $186.40, lifting the chipmaker's market capitalization to $4.6 trillion and cementing its position as the largest publicly traded company in the world. The rally was triggered by an unprecedented wave of upward capital-expenditure revisions from the four U.S. hyperscale cloud providers, who collectively now plan to spend more than $620 billion on data-center buildouts in calendar 2026.
Microsoft led the revisions, lifting its full-year capex guidance to $138 billion from $124 billion, citing accelerating Azure AI consumption and faster-than-expected ramp of its Stargate facility in Wisconsin. Alphabet raised its target to $115 billion from $105 billion, Meta increased its range to $112-118 billion from $98-104 billion, and Amazon Web Services committed to $158 billion versus the prior $140 billion forecast.
AI Infrastructure Now 70% of Spend
The composition of hyperscaler capex has shifted decisively toward AI compute, with the four companies confirming on their respective Q1 calls that GPU clusters, custom silicon, and supporting power infrastructure now account for approximately 72% of total capital spending — up from 51% in 2024. The remaining budget covers traditional cloud server refreshes, networking gear, and physical real estate.
Nvidia disclosed during a brief investor update that production capacity for its Blackwell Ultra and Rubin-generation GPUs through 2027 is now fully allocated to confirmed customer orders, with TSMC committed to delivering an incremental 80,000 wafers per month of CoWoS-L packaging capacity by Q4 2026. The supply commitments effectively de-risk the next two years of revenue against demand uncertainty.
Wedbush Lifts Price Target to $230
Wedbush analyst Dan Ives raised his Nvidia price target to $230 from $210, citing a fiscal-2027 revenue forecast that he now sees reaching $312 billion versus the Street consensus of $278 billion. Bank of America's Vivek Arya followed with a $225 target, while Morgan Stanley's Joseph Moore adopted $215. The most bullish target on the Street remains Rosenblatt's $250.