Semiconductor stocks pushed higher on Friday as upbeat earnings and fresh AI spending signals reinforced Wall Street’s confidence in the sector’s next growth leg.
Nvidia Corp. (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO), Micron Technology, Inc. (NASDAQ:MU), Marvell Technology, Inc. (NASDAQ:MRVL), Intel Corp. (NASDAQ:INTC), Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE:TSM), and Advanced Micro Devices, Inc. (NASDAQ:AMD) stocks gained on Friday.
Google’s CapEx Fuels Optimism
Big Tech giants made it clear they are not slowing down their AI ambitions.
Google helped spark a rally in Nvidia, Broadcom, and other AI-linked chip stocks after Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) sharply raised its 2026 capital spending forecast, signaling a significant jump in demand for data centers, AI hardware, and cloud infrastructure.
Investors cheered the company’s projected $175 billion to $185 billion in capex—far above expectations—viewing it as a strong tailwind for suppliers like Broadcom, which helps design Google’s custom TPU chips, and for Nvidia, which still benefits from broader AI spending across hyperscalers.
Industry Nears $1 Trillion Milestone
The semiconductor industry is set to hit a significant milestone this year, reaching $1 trillion in annual revenue for the first time as artificial intelligence drives chip demand across nearly every corner of the economy.
The Semiconductor Industry Association said global sales totaled $791.7 billion in 2025 and are projected to jump another 26% in 2026.
SIA CEO John Neuffer told Bloomberg on Friday that the industry is hitting the trillion-dollar mark far faster than expected.
Surging demand for new data center systems has delivered a windfall for companies like Nvidia and Micron, helping the industry repeatedly outpace earlier forecasts that predicted the milestone would take several more years.
Neuffer said the market will continue to experience boom-and-bust cycles, but the long-term expansion remains firmly in place as the overall pie keeps growing.
CNBC’s Jim Cramer crowned Nvidia the GOAT and compared the AI chip leader’s dominance and toughness to boxing legend Muhammad Ali.
Speaking on “Squawk on the Street,” he acknowledged that the stock has been hit lately but emphasized Nvidia’s resilience.
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