The 50-day moving average was cleared by Nvidia’s stock (NVDA) on Friday following Amazon’s (AMZN) earnings. The demand for Amazon’s artificial intelligence services was a major factor in the company’s first-quarter capital expenditure spike. Compared to $13.9 billion in the same quarter last year, Amazon’s capital expenditures for the first quarter increased to $24.3 billion.

Leaders of the Magnificent Seven, Microsoft (MSFT) and Meta (META), released quarterly earnings late Wednesday that exceeded projections. In 2025, Meta was able to sustain its “artificial intelligence efforts” by increasing its capital expenditure.

Because of worries over China’s progress in developing AI chips, NVIDIA’s shares fell 2.1% on April 28 and ended the day at $108.73. Competition has increased as a result of Huawei possible introduction of a new AI processor, especially in markets where American goods are subject to limitations. 

Amazon announced earlier this year that it would raise its expenditures by 27%, or $105 billion, primarily for AI data centers. However, Alphabet, which intends to raise its spending by 57% to a total of $75 billion, surpassed that.

During its fourth-quarter earnings call in February, Amazon CEO Andy Jassy stated,

“Nvidia chips have been the driving force behind the majority of AI (computing), and we obviously have a deep partnership with Nvidia and will for as long as we can see into the future.”

Current Nvidia Beats Analyst Earning

On February 26, Nvidia exceeded analyst earnings projections. In spite of this, shares fell 8% the following day before falling even further. With $39.33 billion in sales for the fourth quarter, the leader in AI chips made 89 cents per share. Analysts had predicted $38.1 billion in sales and 85 cents in earnings per share. This earnings season, Nvidia is the only Magnificent Seven business to reveal a revenue surprise.

The United States accounted for 47% of overall sales, followed by Taiwan at 16% and China at 13%. Additionally, the business reported that three clients now generate over 10% of its total income. Blackwell has already emerged as Nvidia’s fastest-growing product category, according to the company’s management. Nvidia anticipates adjusted gross margins of 71% for the current quarter.