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Nvidia and other chip stocks are riding AI optimism. Will Amazon’s earnings change that? - MarketWatch

1. Microsoft and Meta beat earnings, boosting AI spending confidence. 2. Nvidia shares rose over 4% in response to positive industry sentiment. 3. Meta raised capex targets, indicating strong AI investment focus. 4. Concerns persist about sustainability of AI spending amid economic uncertainty. 5. Analysts predict that Amazon's upcoming earnings may affect market sentiment.

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FAQ

Why Bullish?

The strong earnings from Microsoft and Meta alleviate fears about AI investment sustaining growth. Historical trends show NVDA benefits from increased tech spending, especially in AI.

How important is it?

The article highlights trends in capital expenditures directly tied to AI, impacting NVDA positively as a key supplier.

Why Short Term?

Positive sentiment could drive short-term price increases for NVDA, as seen previously post-earnings seasons.

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