- NVIDIA surged 7.3% Friday, leading a broad tech stock rebound after over a week of selloffs.
- Wall Street is reassessing AI disruption and the risks of massive spending, with Big Tech poised to invest an expected $650 billion in AI in 2026.
- While chipmakers rallied, Amazon shares tumbled 7% after outlining plans for a massive 2026 jump in spending to at least $200 billion.
Tech stocks, led by a surging Nvidia, rebounded sharply on Wall Street early Friday, halting a week-long selloff as investors reassessed their fears. The rally saw the S&P 500 flirt with its best day since May, while the Dow Jones Industrial Average soared over 1,000 points.
Chip companies drove the widespread rally, with Broadcom gaining 7.5% to erase its weekly loss. Consequently, Nvidia‘s jump trimmed its weekly decline and positioned it to benefit from Big Tech’s projected $650 billion AI investment in 2026. Analysts maintain a strong Buy rating on the stock, highlighting its potential as the market stabilizes.
Meanwhile, Nvidia‘s return to $200 is seen as a potential turning point for the volatile tech sector. As a market leader, its rebound could fuel a broader rally among other technology stocks.
Nvidia holds a Zacks Rank of #2 (Buy), indicating strong analyst confidence. Furthermore, analysts maintain bullish outlooks with price targets ranging from $220 to $320, including a $320 target from Melius Research.
However, slumps persisted for some major tech names on Friday. Amazon‘s shares tumbled 7% after its earnings forecast for operating income fell short. Shares in Alphabet and Meta also declined during the trading session.
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