Date: March 8, 2025
The tech sector roared back to life on Friday, March 8, as Nvidia (NVDA) spearheaded a broader market rebound driven by resurgent demand for artificial intelligence (AI) chips. The Nasdaq Composite surged 2.4%, closing at 16,670.35, as investors piled back into high-growth technology stocks.
Nvidia’s Meteoric Rise
Nvidia shares soared 8.2% to $991.34 after the company announced a significant increase in AI chip orders from both hyperscale data center providers and sovereign AI projects. Analysts at Morgan Stanley upgraded the stock, citing “unprecedented backlog strength” and “near-monopoly momentum in advanced AI processing.”
Nvidia’s rally added over $180 billion to its market capitalization in a single session, marking one of the largest single-day gains in U.S. equity history.
“AI chip demand has reached escape velocity,” said Dan Ives of Wedbush Securities. “Nvidia remains the foundational player in this multi-trillion-dollar transformation.”
Nasdaq Rallies as Tech Sentiment Shifts
The broader tech rally lifted several AI-adjacent names:
- Advanced Micro Devices (AMD): +5.7%
- Microsoft (MSFT): +2.9%
- Alphabet (GOOGL): +3.1%
- Meta Platforms (META): +2.4%
The Nasdaq Composite ended the day at 16,670.35, the highest level since November 2021, while the S&P 500 added 1.6% to finish at 5,240.18.
AI Investment Cycle Accelerates
The rebound follows a week of volatility triggered by mixed economic data and Fed policy speculation. But Nvidia’s update appears to have reignited confidence in the long-term growth thesis for AI, particularly in hardware infrastructure.
Recent data shows that capital expenditure on AI infrastructure by major cloud providers is up 37% YoY in Q1 2025, with Nvidia commanding over 78% of the AI accelerator market.
Geopolitical and Policy Tailwinds
The rebound also benefited from easing tensions in the Taiwan Strait and dovish comments from Fed Governor Lisa Cook, who hinted that “rate hikes may be behind us” if disinflation continues.
Meanwhile, the U.S. Commerce Department reiterated its commitment to AI innovation as a national priority, aligning with the $12 billion federal initiative to boost domestic semiconductor capacity.
Crypto and Risk Appetite
Risk-on sentiment spilled into the crypto space, with Bitcoin rising 3.8% to $64,920, and Ethereum climbing 4.5% to $3,590, both benefiting from the AI-fueled tech optimism.
Looking Ahead
While Friday’s rally underscores investor enthusiasm around AI, analysts warn of overextension risks. Valuations for top-tier AI names remain elevated, and any disruption in supply chains or regulation could trigger volatility.
Nonetheless, with fiscal and corporate investment flowing freely into the AI ecosystem, and Nvidia sitting firmly at the center, the rally may have room to run.
Key Market Closings (March 8, 2025):
- Nvidia (NVDA): $991.34 (+8.2%)
- Nasdaq Composite: 16,670.35 (+2.4%)
- S&P 500: 5,240.18 (+1.6%)
- Dow Jones Industrial Average: 38,488.67 (+1.2%)
- Bitcoin (BTC): $64,920 (+3.8%)
- Ethereum (ETH): $3,590 (+4.5%)
- 10Y Treasury Yield: 4.12% (-4bps)
- Crude Oil (WTI): $78.34 (-0.6%)
- Gold: $2,147.50 (+0.3%)
Stay tuned for further updates as the AI megatrend continues to shape the investment landscape.
