Nvidia rose on Friday. Investors looked to be taking heart from the chip maker's peer Broadcom which injected some life into the artificial-intelligence trade with a strong earnings report.

Nvidia shares were up 1.9% at $112.69 on Friday trading. The stock fell 5.7% the previous day.

Nvidia has tumbled from highs of close to $150 at the start of the year as the market turns toward safe-haven plays amid trade war uncertainty. Investors are judging the risk of tariffs being placed on Taiwan, where Nvidia's chips are manufactured, as well as further curbs on exports of semiconductors to Chinese customers.

However, Broadcom's stronger-than-expected earnings could provide some reassurance, after the custom-AI semiconductor company said each of its top three customers are heading for building one-million chip clusters by the end of 2027. The largest current AI data centers house hundreds of thousands of chips.

While Broadcom's custom chips do provide an alternative to Nvidia's hardware in some cases, generally the strength of demand for AI infrastructure should be a positive for both companies. Morgan Stanley's technology team estimates the custom AI chip share of the market stood at 11% in 2024, and will rise to 15% in 2030 with the balance going to AI graphics-processing units, primarily made by Nvidia.

"While trade policy and AI concerns have pressured U.S. equities, strong demand for AI compute and ongoing investment in infrastructure should support long-term growth. AI-driven capex trends reinforce our confidence in AI as a structural growth driver despite near-term volatility," wrote Mark Haefele, chief investment officer at UBS Global Wealth Management, in a research note.