The demand for AI chips remains strong, and Ruijiu leads the chorus of many Nvidia (NVDA.US)

Shares of Nvidia (NVDA.US) were upgraded to $132 from $127.50 ahead of the company's earnings announcement later this month.

Vijay Rakesh, an analyst at Raymond James, said Nvidia's GPU acceleration series orders remain strong, and TSMC's (TSM.US) CoWoS (Chip-on-Wafer-on-Substrate) capacity remains tight with the continued growth of Nvidia's H100 and H200 GPUs.

However, Nvidia is now moving to Blackwell lines using NVL36/72, which uses CoWoS-L technology for its packaging.

Rakesh said that even though the mass production of the Blackwell lines may be delayed to the beginning of next year, the demand for it has not changed.

In the end, Rakesh said that Nvidia may return to B200A and 210A in the second half of 2025 and part of 2026 due to the easing of CoWoS supply for AI servers with mid-low budgets.

Nvidia is scheduled to announce its earnings after the market close on August 28, and analysts generally expect the company to report revenue of $28.54 billion and earnings per share of $0.64.

Nvidia shares were up 0.50% at $105.50 at the time of writing, and have risen 112% year-to-date despite recent volatility.