Nvidia's AI Chip Demand Set to Continue Amid Tech Earnings

Nvidia stock is rising ahead of tech earnings reports, up 0.9% to $175.06. Amazon, Microsoft, and Meta Platforms, major customers for Nvidia, are set to report their earnings this week. The tech giant's AI chips have seen high demand, and their earnings reports are likely to confirm this trend.

Nvidia (NVDA) stock surged to a new high on Monday, July 2, 2025, rising 0.9% to $175.06. The upward trend follows reports that the chipmaker has placed a significant order for AI chips for the Chinese market, a move that has bolstered investor confidence in the company's growth prospects. The order, which includes 300,000 H20 chipsets, is expected to be fulfilled by Taiwan Semiconductor Manufacturing (TSM) [1].

The order reflects Nvidia's optimism in the Chinese AI market, a sentiment that has been bolstered by the lifting of U.S. trade restrictions on the H20 chips. These chips, which are throttled versions of Nvidia's Hopper series H100 processors, are specifically designed for the Chinese market. Nvidia sold around 1 million H20 chips in 2024, according to U.S. research firm SemiAnalysis, Reuters reported [1].

Analysts remain optimistic about Nvidia's prospects. Wedbush Securities analyst Matt Bryson noted that the news could have positive ramifications for other parts of the server supply chain, including CPUs, storage, memory, and cooling. Bryson rates Nvidia stock as "outperform" with a price target of $175 [1].

The positive sentiment surrounding Nvidia comes as several major tech companies, including Amazon, Microsoft, and Meta Platforms, are set to report their earnings this week. These companies are significant customers for Nvidia's AI chips and their earnings reports are expected to provide further insights into the demand for these products. Amazon, Microsoft, and Meta Platforms are all heavily investing in AI and infrastructure, which are critical for powering large language models and other AI technologies [2].

Microsoft, which is scheduled to report its earnings on July 30, has seen strong growth in its Azure cloud business, which is benefiting from its partnership with AI leader OpenAI. Meta Platforms, on the other hand, is focusing heavily on AI infrastructure, committing $60-70 billion in capital expenditure for this year. Both companies have seen significant growth in their stock prices over the past few months [2].

Apple, which is scheduled to report its earnings on July 31, has been a notable laggard in the tech sector. Despite a positive earnings estimate revision, the company is facing slowing device sales and investor skepticism over its AI roadmap [2].

The earnings reports from these major tech companies are likely to provide crucial insights into the future growth strategies of the tech sector, particularly around AI and infrastructure investments. Investors will be closely watching these reports to gauge the demand for Nvidia's AI chips and the broader impact on the tech sector.

References:
[1] https://www.investors.com/news/technology/nvidia-stock-record-high-china-ai-chip-orders/
[2] https://finance.yahoo.com/news/single-stock-etfs-focus-big-140000413.html