Tech Stocks Rise Amidst Security Concerns, Earnings Reports and IPOs

NVIDIA's stock fell 0.78% due to security concerns over its H20 computing chips, which the Chinese Cyberspace Administration requested to address. Meanwhile, Meta Platforms' shares surged 11.25% after a strong earnings report and optimistic Q3 revenue guidance, with plans to double AI infrastructure investment. Microsoft's shares rose 3.95% with a 39% sales increase in Azure cloud computing. Tesla's shares dropped 3.38% due to regulatory hurdles for its Robotaxi service. Figma's stock soared 250% on its NYSE debut, marking the largest tech IPO of the year.

Title: NVIDIA's H20 Chips Face Scrutiny, Meta Shares Surge Amid Strong Earnings

NVIDIA's stock fell 0.78% on July 2, 2025, amidst growing security concerns over its H20 computing chips. The Chinese Cyberspace Administration (CAC) has requested that NVIDIA address potential backdoor security risks associated with the H20 chips, which are crucial for data centers, gaming, and AI applications in China. This scrutiny comes after the U.S. lifted an effective ban on NVIDIA's H20 AI chips in April, allowing the company to resume sales to China [1].

The CAC's concerns are rooted in allegations that NVIDIA's chips contain serious security vulnerabilities, including "tracking and positioning" and "remote shutdown" technologies. These concerns have been echoed by U.S. lawmakers, who have pushed for mandatory tracking features in advanced AI chips [1]. NVIDIA has denied these allegations, stating that its chips do not have any "backdoors" that would allow unauthorized access [1].

In contrast, Meta Platforms' shares surged 11.25% after the company reported strong second-quarter earnings. Meta's ad business continues to thrive, with daily active users growing 6% year over year. The company's earnings per share (EPS) jumped 38% year over year to $7.14, beating Wall Street's expectations [4]. Meta also announced plans to double its AI infrastructure investment in 2026, further fueling investor confidence.

Microsoft's shares rose 3.95% as the company reported a 39% increase in sales for its Azure cloud computing service. Tesla's shares dropped 3.38% due to regulatory hurdles for its Robotaxi service, while Figma's stock soared 250% on its NYSE debut, marking the largest tech IPO of the year [3].

References
[1] https://www.cnbc.com/2025/07/31/china-probes-nvidia-h20-chips-for-tracking-risks.html
[2] https://www.qatar-tribune.com/article/187767/business/china-raises-security-concerns-over-nvidias-h20-ai-chips
[3] https://finance.yahoo.com/news/live/earnings-live-microsoft-meta-stocks-surge-with-more-tech-earnings-from-apple-and-reddit-on-deck-164005468.html
[4] https://finance.yahoo.com/news/why-meta-platforms-stock-skyrocketing-193226720.html