Nvidia Stock Rises 94% Amid China Export Boost and Hyperscaler Capex Spending

Nvidia's stock has surged 94% since April due to positive developments, including the lifting of export restrictions to China, significant hyperscaler capex spending, and strategic deals in the Middle East and Europe. The company is expected to report Q2 FY 2026 earnings on August 27, with investors optimistic about meeting high expectations. Wall Street maintains a Strong Buy consensus on the stock, with projected 47% YoY growth in EPS and a 52.3% increase in revenue for the upcoming quarter.

Nvidia Corporation (NASDAQ: NVDA) has seen its stock price surge by 94% since April, driven by several positive developments. The lifting of export restrictions to China, substantial hyperscaler capital expenditure (capex) spending, and strategic deals in the Middle East and Europe have all contributed to the company's strong performance.

The stock's recent rise comes on the heels of the company reporting mixed first-quarter earnings. However, the stock soared following President Trump's announcement of a new U.S.-China trade agreement that paused tariffs. This pause led to a significant recovery in the stock price, erasing the steep drop it suffered earlier in the year due to export restrictions on its H20 AI chip to China [2].

Nvidia's pivot to U.S. AI infrastructure investments and new chip designs for China has shown resilience. The company has invested heavily in its supply chains, with $3.2 billion in capex in fiscal 2025, expanding Blackwell accelerator production and AI infrastructure. The company's capex has spiked over 200% this year to more than $3 billion to meet hyperscaler demand [2].

The company's automotive segment has also seen significant growth, with a 103% year-over-year increase in revenue in the first quarter, driven by partnerships with Toyota and Aurora Innovation for autonomous vehicles [2]. This diversification helps mitigate the risks posed by tariff uncertainties.

Investors are optimistic about Nvidia's upcoming earnings report, scheduled for August 27. The company is expected to report 47% year-over-year (YoY) growth in earnings per share (EPS) and a 52.3% increase in revenue for the upcoming quarter. Wall Street maintains a Strong Buy consensus on the stock, with analysts projecting robust growth [3].

However, Nvidia still faces significant hurdles. The company's profitability remains robust, with the company reportedly raising prices on its GPUs by 10% to 15% due to tariffs. The AI market is projected to grow at a 37% compound annual growth rate (CAGR) through 2030, supporting Nvidia's $170 billion fiscal 2026 revenue forecast [2].

In conclusion, Nvidia's stock has surged due to several positive developments, including the lifting of export restrictions to China, substantial capex spending, and strategic deals. Investors are optimistic about the company's upcoming earnings report, with Wall Street maintaining a Strong Buy consensus. However, the company still faces significant hurdles and risks.

References:
[1] https://au.finance.yahoo.com/quote/NVDA/history/
[2] https://247wallst.com/investing/2025/08/06/nvidia-nasdaq-nvda-stock-price-prediction-for-2025-where-will-it-be-in-1-year/
[3] https://finance.yahoo.com/news/prediction-nvidia-stock-skyrocket-aug-090000871.html