Nvidia stock up 0.6% as AI chip demand fuels tech earnings

Nvidia stock rose 0.6% to $174.60 in premarket trading ahead of earnings reports from major customers Amazon, Microsoft, and Meta. The company's AI chips have seen strong demand, and investors are likely to look for confirmation of this trend in the earnings announcements.

Nvidia (NASDAQ: NVDA) stock rose by 0.6% to $174.60 in premarket trading on July 2, 2025, ahead of the earnings reports from major customers Amazon, Microsoft, and Meta. The company's AI chips have seen strong demand, and investors are eagerly anticipating confirmation of this trend in the upcoming earnings announcements.

In the past three months, despite tightened export controls by the Trump administration, at least $1 billion worth of Nvidia's advanced artificial intelligence processors were smuggled into China [1]. The Financial Times reports that the B200 chip, in particular, has become highly sought after in the Chinese market. This demand can be attributed to the chip's performance, value, and relatively easy maintenance compared to more complex models.

The high demand for Nvidia's AI chips is also reflected in the company's stock performance. Despite the recent market volatility and geopolitical uncertainties, Nvidia has maintained its position as a leader in the AI chip market. The company's stock has seen significant growth, transforming early believers into multi-millionaires [3].

Investors are closely watching Nvidia's earnings report to gauge the company's performance in the AI chip market. The company's AI chips are integral to various industries, including tech, finance, and healthcare. Leading Chinese AI players with global operations are unable to legally purchase and install these chips, leading to a thriving black market for smuggled Nvidia chips [1].

Moreover, the recent earnings season has seen a focus on AI investments by major tech companies. Alphabet (GOOG) raised its full-year capital expenditures forecast to $85 billion, citing growing demand for cloud computing products and services [2]. Microsoft and Amazon are also expected to provide updates on their AI investments and how they are using AI to drive monetization and efficiency gains.

The potential impact of trade policy on Nvidia's earnings is also a concern for investors. Apple, in particular, is facing potential tariffs on smartphones and semiconductors, which could add to the company's costs [2]. However, Nvidia's focus on AI chips and its strong market position may help mitigate the impact of trade policy.

In conclusion, Nvidia's stock performance reflects the strong demand for its AI chips and the company's leadership in the AI market. Investors will be closely watching the company's earnings report to gain insights into its performance and the potential impact of trade policy.

References:
[1] https://www.breitbart.com/tech/2025/07/27/report-nvidia-ai-chips-worth-1-billion-smuggled-to-china-despite-export-controls/
[2] https://www.investopedia.com/here-are-three-questions-big-tech-earnings-this-week-meta-microsoft-apple-amazon-11779269
[3] https://www.finance-monthly.com/can-10000-in-nvidia-make-you-rich/