Nvidia’s shares experienced a notable increase on Tuesday, rising approximately 3% as investors prepared for the AI chipmaker’s fiscal first-quarter results, which are set to be announced after the market closes on Wednesday. This uptick comes after the company’s stock had a challenging start to 2025, primarily due to concerns over the future of AI spending and the implications of new export restrictions affecting advanced U.S. technology.
Last month, Nvidia had cautioned investors regarding the potential for a $5.5 billion charge related to new sales limitations on its H20 chips destined for China. However, analysts maintain a predominantly optimistic outlook on Nvidia’s performance, predicting that the company will report increased sales and profitability, driven by robust demand for its hardware supporting AI initiatives.
The surge in stock price also contributed to an impressive market capitalization of $3.30 trillion, positioning Nvidia as the second most valuable public company globally, following Microsoft. Notably, Apple has seen a decline in market capitalization, falling behind Nvidia amid concerns regarding potential tariffs, with President Trump’s warning of a 25% tariff on iPhones produced outside the U.S. likely influencing investor sentiment.
In addition to Nvidia, several of its partners, including Super Micro Computer, TSMC, Micron Technology, and Dell Technologies, also saw their stock prices rise on Tuesday, showcasing a positive ripple effect through the tech sector as optimism surrounds AI-related investments. This illustrates the interconnected nature of tech companies and highlights the potential for continued growth in AI technologies, fostering an positive outlook for the industry as a whole.