AI Stocks Surge Ahead of Nvidia Earnings Amid Market Rally

Nvidia's stock rose 3.2% ahead of its earnings report, driven by a broad market rally after President Trump delayed EU tariffs. Tech and consumer discretionary stocks led the rally, with AI stocks performing particularly well. Nvidia affiliates such as Navitas Semiconductor, Coreweave, and SoundHound AI also saw significant gains.

Investors' renewed risk appetite on Tuesday boosted Nvidia shares—and those of several companies linked with the tech giant—a day before the company is slated to report earnings. Nvidia (NVDA) stock rose 3.2% amid a broad rally following President Donald Trump's weekend decision to postpone until early July a 50% tariff on European imports he first threatened on Friday. Consumer discretionary and tech stocks led Tuesday's rally, with small-cap and AI stocks performing particularly well [1].

Shares of Navitas Semiconductor (NVTS) jumped nearly 50% on Tuesday. The power semiconductor maker’s stock soared more than 150% on Thursday after the company announced it would supply power chips for Nvidia’s next-generation AI systems. Navitas entered Tuesday's session with a market cap of about $850 million [1].

Shares of several other Nvidia affiliates—past and present—were sharply higher Tuesday. Coreweave (CRWV), in which Nvidia held a nearly $1 billion stake as of the end of March, soared more than 20% on Tuesday. The cloud computing firm's stock has more than tripled in value since debuting on the Nasdaq in late March [1].

SoundHound AI (SOUN) gained 16%, putting the stock up nearly 400% since Nvidia disclosed an equity stake in February 2024. Nvidia divested from SoundHound in the fourth quarter of 2024, according to a regulatory filing earlier this year [1].

The broader market rally was also driven by the delay in EU tariffs, which provided temporary relief to investors. Key points from Reuters reported that stock markets across Asia edged higher, and the euro rallied after Trump extended his deadline for trade talks until July 9 [3].

Nvidia's earnings report on Wednesday will be closely watched by investors, as the semiconductor giant's forecasts are seen as an indication of demand for tech infrastructure. Analysts expect the report to be a catalyst for markets, given the significance of Nvidia's quarterly performance [3].

References:
[1] https://www.investopedia.com/ai-stocks-drive-market-rally-ahead-of-nvidia-earnings-tech-shares-11742604
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3RX060:0-asian-stocks-euro-gain-after-trump-delays-eu-tariffs/