AI Boom Reprices Tech: Nvidia Hits $5 Trillion as Earnings Beat and Spending Plans Jolt Markets

Overview

• Nvidia became the first company to reach a $5 trillion market value after new AI partnerships, large chip order bookings and U.S. supercomputer plans lifted shares.
• Microsoft and OpenAI unveiled a restructuring that creates OpenAI Group PBC, leaves Microsoft with about 27% exposure and removes prior fundraising limits while preserving privileged AI access.
• Alphabet, Microsoft and Amazon topped quarterly revenue expectations on cloud strength, with AWS revenue up 20% year over year and Alphabet logging its first $100 billion-plus quarter.
• Meta’s revenue beat contrasted with an 83% profit drop driven by a $15.93 billion non‑cash U.S. tax charge, and the company flagged higher 2026 AI infrastructure spending.
• Stocks reversed after the initial tech rally as investors weighed heavier AI data‑center outlays and cautious Federal Reserve signals; Nasdaq fell 1.57% while Alphabet rose and Microsoft and Meta declined.