Alibaba, Nvidia Market Value Soars

According to Bloomberg, the global AI boom is creating a new stock market trend where massive AI investment announcements often trigger market value gains far beyond the actual investment amount.

Take Nvidia as an example. The company recently revealed a $5 billion stake in Intel and followed up with plans to invest up to $100 billion in OpenAI. Within just three trading days, Nvidia's market cap surged by more than $320 billion—triple the funds it expects to commit to these deals.

Alibaba also saw a sharp market reaction. On Wednesday, its U.S.-listed shares jumped nearly 10% after it disclosed plans to exceed its original $50 billion AI investment target set earlier this year. Even without exact figures, the news added more than $35 billion to its market value.

Normally, large-scale spending doesn't deliver immediate rewards on Wall Street. But the excitement around AI has made investors eager to back companies building data centers and pushing for AI dominance. While only a few players can currently show solid financial returns from these bets, their valuations have still soared.

Meanwhile, Meta, Microsoft, Google's parent Alphabet, and Amazon have together pledged more than $317 billion toward AI in 2025. The combined boost to their market caps has been staggering—around $1.8 trillion, far surpassing their planned spending.