Shares in AI juggernaut Nvidia Corp (NASDAQ: NVDA) just notched another all-time high, surging to US$179.80 in intraday trading and even going as high as $183 per share after hours.
The stock is up 2.1% today and almost 30% year-to-date. So, what's driving the latest rally?
I think it comes down to a bullish upgrade from Morgan Stanley, stellar results from Meta Platforms Inc (NASDAQ: META), and another blockbuster quarter from Microsoft Corp (NASDAQ: MSFT).
All signs point to one thing: Demand for AI chips is accelerating, and Nvidia remains at the centre of it.
Morgan Stanley sees more upside
On Wednesday, Morgan Stanley analyst Joseph Moore lifted his price target on Nvidia from US$170 to US$200 per share, implying another 11% upside. Moore maintained Nvidia as his top semiconductor pick, citing stronger-than-expected AI demand, expanding inference workloads, and a ramp-up in sales of Nvidia's next-generation Blackwell chips in the second half of 2025.
AI strength is exceptional in both supply and demand… All our data points and contacts are telling us that customers need more compute.
Meta's AI push boosts chip optimism
Meta added fuel to the fire with its own stellar earnings results and an 11% surge in the share price after hours. The company crushed revenue expectations and highlighted massive upcoming investment in AI infrastructure, with 2025 capex now expected to hit up to US$72 billion.
This is bullish for Nvidia, which soaks up a lot of this demand for best in class AI chips.
Meta CEO Mark Zuckerberg also revealed a bold vision for "superintelligence", including hiring sprees and new data centre builds, all of which will require more chips, more compute, and more Nvidia.
Microsoft shows AI demand remains strong
Meanwhile, Microsoft's earnings confirmed what investors had hoped: AI isn't slowing down, it's accelerating. Azure cloud revenue jumped 39%, and Microsoft disclosed for the first time that Azure brought in over US$75 billion last year.
The company is spending aggressively to meet demand, with over US$30 billion in capex planned next quarter. Microsoft's Copilot apps and AI infrastructure are just getting started, and Nvidia is a key supplier to those initiatives.
Foolish Takeaway
Wall Street is watching the same story unfold across Big Tech: AI demand is growing faster than expected, and Nvidia is still the primary picks and shovels seller in this gold rush.
When companies like Microsoft and Meta are doubling down on infrastructure, and analysts are lifting targets despite sky-high prices, it tells you something: The AI cycle isn't cooling off, it's just entering the next phase.
And Nvidia? It's still leading the charge.
