Why Is the Stock Market Up Today? Nvidia Earnings Propel Tech Rally
November 20, 2025 — U.S. stocks climbed on Thursday as Nvidia showed strong quarterly numbers. The report from the chip maker gave a clear sign, and investors saw new hope in the AI field. Gains spread across key indexes.
Nvidia’s Explosive Earnings Report
Nvidia showed a 62% jump in revenue compared to last year. The company reached $57 billion this quarter. The earnings per share came in at $1.30, past the $1.26 prediction. The firm also gave guidance that signals about $65 billion in revenue next quarter against the $62 billion estimate. CEO Jensen Huang stressed that demand for AI systems stays high. The company said its cloud GPUs are all booked, and sales on its new Blackwell GPUs grow fast.
AI Infrastructure Spending Drives Growth
Big cloud firms spend heavily on AI gear. Microsoft, Meta, Amazon, and Google are set to spend over $380 billion on AI this year. Nvidia’s data center income hit $51.2 billion. That is a 25% rise from last quarter and 66% more than last year. On the earnings call, CFO Colette Kress pointed to clear gains from these investments. She mentioned Meta’s stronger user activity with AI engines, Anthropic’s expected $7 billion yearly revenue, and a 30% jump in productivity at Salesforce from AI coding help. These details show that money spent on AI gives results.
Market Response: Broad-Based Rally
Nvidia’s report boosted the market widely. The tech sector grew by 1.6%. Nvidia’s stock went up 2.56% to $192.29. Other chip names such as Broadcom gained 4.77% while AMD also moved up. The seven large tech companies moved higher too: Alphabet Class C climbed 3.31% and Tesla rose 4.27%.
Other sectors did well as well. Communication Services moved up 1.95%, Energy by 1.61%, and Consumer Discretionary by 1.51%. Some stocks jumped high too. Regeneron Pharmaceuticals soared 6.69% and Diamondback Energy increased 3.62%.
Index Gains at a Glance
At 16:54 GMT, major indexes showed this clear mood:
- S&P 500: +1.38% at 6,733.68
- Nasdaq Composite: +1.76% at 22,962.12
- Dow Jones Industrial Average: +1.15% at 46,669.98
Renewed Confidence in AI Spending Durability
Investors now worry less about a burst in AI spending. Nvidia has more than $500 billion in GPU orders for 2025 and 2026. CFO Kress said that this number may rise. This helps cut some doubts about ongoing AI demand. Analysts view these numbers as clear signs that spending on AI will keep driving growth.
Outlook
Hyperscale companies keep investing fast. Nvidia’s strong report builds trust for the AI gear market. Investors will watch other tech firms to see if this strong pace can hold.
James Hyerczyk, a U.S.-based technical analyst with over 40 years of market work, wrote this report.
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Disclaimer: This article is for informational purposes only and does not count as investment advice. Readers should do their own research and talk with a financial advisor before making any investment decisions.
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