Nvidia stock rises, banking stocks in focus, US inflation data due.

• NYSE Pre-market update highlights market insights before trading begins • Stocks expected to open higher, led by Nvidia's resumed H20 AI chip sales • Financial stocks in focus as bank earnings season begins • Blackrock, J.P Morgan Chase, Wells Fargo, and Citigroup to report earnings • Bureau of Labor Statistics to release June Consumer Price Index data • Insights into inflation and impact of President Trump's tariffs on the US economy.

Nvidia (NVDA) stock surged nearly 5% to $171.41 in pre-market trading on July 2, 2025, following the company's announcement that it expects to resume sales of its H20 AI chip to Chinese customers. The positive development was driven by assurances from the U.S. government that export licenses will be granted, marking a significant step for Nvidia, which designed the H20 GPU to comply with U.S. export restrictions on advanced chips to China [1].

The Trump administration had previously halted these sales, leading to a $4.5 billion inventory charge for Nvidia in Q2. The resumption of H20 chip sales could restore a significant portion of these lost sales, with Chinese tech giants like ByteDance, Tencent, and Alibaba already lining up orders [2]. Nvidia’s new RTX Pro GPU, designed to meet U.S. export rules for industrial use, is also expected to boost its China strategy.

The positive news also lifted related stocks, with Advanced Micro Devices (AMD) up 4.44% to $152.74, Broadcom (AVGO) up 1.47% to $279.65, Taiwan Semiconductor (TSMC) up over 2% to $233.55, and Super Micro Computer (SMCI) up 3.92% to $51.68. The broader AI chip ecosystem is reacting positively to the export approval, with investor confidence returning to the market.

Nvidia’s stock price jump reflects strong investor optimism following the H20 export greenlight. If shipment licenses are approved within July as expected, analysts foresee Nvidia retesting its previous record highs around $174–$177, possibly even pushing toward the $180 mark before Q3 ends [1]. The chipmaker could also benefit from an influx of backlogged orders from Chinese giants like ByteDance, Alibaba, and Tencent. If early deliveries begin by August, Nvidia may exceed revenue estimates in its next earnings report, pushing the stock further.

In the broader picture, Nvidia is positioned as the backbone of global AI infrastructure, and with supply chains stabilizing and geopolitical doors slightly ajar, its long-term trajectory looks increasingly bullish. The decision to allow H20 shipments isn’t just a win for Nvidia—it could reshape the entire AI chip supply chain in 2025 and beyond [1].

References:
[1] https://m.economictimes.com/news/international/us/nvidia-stock-surges-4-47-in-pre-market-as-u-s-clears-h20-ai-chip-sales-to-chinaamd-up-3-18-too-as-ai-trade-door-reopens/articleshow/122496972.cms
[2] https://wallstreetpit.com/128057-nvidia-stock-jumps-after-u-s-allows-some-ai-chip-sales-to-china/