Tech stocks were in the spotlight Friday, with Amazon (AMZN), Intel (INTC), and Nvidia (NVDA) all seeing substantial gains, while Apple (AAPL) struggled. Amazon’s impressive third-quarter earnings, coupled with Intel’s strong forecast, fueled positive sentiment in tech and semiconductor stocks, benefitting Nvidia shares as well.
Amazon’s stock surged 7% in premarket trading, bolstered by a 50% profit increase and an 11% operating margin, exceeding Wall Street’s 9% estimate. The e-commerce and cloud giant reported more than $17 billion in profit for the quarter, indicating a solid balance between high AI investments and profitability. CEO Andy Jassy highlighted that Amazon expects $75 billion in capital expenditures this year, with plans for even more in 2025, as the company scales its AI and cloud infrastructure.
Nvidia’s shares rose 1.5% in premarket following the Amazon news, a boost after facing investor concerns over potential AI spending cuts across Big Tech. Nvidia, a leading AI chip provider, is poised to benefit from Amazon’s aggressive AI investment plans. Intel’s stock also climbed 7.6% after it offered an upbeat fourth-quarter outlook, which helped lift sentiment in the semiconductor sector overall.
Meanwhile, Apple faced challenges, with shares falling around 2% due to weaker-than-expected China sales and a sizable EU tax obligation. Apple’s forecast for low-to-mid-single-digit sales growth in the December quarter also missed analysts’ 7% growth estimate, adding pressure to the stock.
As AI spending and cloud infrastructure investments remain robust, Nvidia is positioned to capture gains from the tech momentum, despite Apple’s current hurdles. The optimism surrounding Amazon’s spending trajectory and Intel’s positive outlook highlights sustained demand in AI-related sectors, where Nvidia continues to be a core player.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a qualified financial advisor or conduct your own research before making investment decisions.
