Nvidia's Shares Surge 13% in July's Market
Nvidia, the world's most valuable company, has resumed sales of its H20 chips to customers in China after a three-month moratorium. This decision could potentially generate over $9 billion in quarterly revenue for the tech giant.
Before the ban, the quarterly sales suggested a potential revenue of over $9 billion, indicating a significant loss during the moratorium. However, Nvidia had a limited supply of H20 chips in stock before the resumption of sales.
Nvidia's success is largely attributed to its role in the development of artificial intelligence technology. The company's graphics processing units (GPUs) are a key component in AI technology, and Nvidia controls about 90% of the data center GPU market.
The surge in Nvidia's shares was influenced by the ongoing developments in the field of artificial intelligence and the resumption of H20 chip sales. In July 2025, analysts viewed Nvidia's stock very optimistically, driven by strong demand for AI hardware and exceptionally high revenues exceeding $130 billion in the fiscal year ending January 2025. This was reflected in a 32.5% increase in the stock and a market capitalization above four trillion USD.
Nvidia's management increased the share buyback program by $60 billion, signaling confidence in the undervaluation of the stock. Recent analyses emphasized Nvidia's continuing dominance in AI and data center markets as key reasons for optimism.
Several Wall Street analysts have issued bullish takes on Nvidia, citing the resumption of sales in the Chinese market. The results of Nvidia's fiscal 2026 second quarter are likely to be higher than its forecast, due to the resumption of sales in the Chinese market. Nvidia is scheduled to report the results of its fiscal 2026 second quarter after the market close on Aug. 27.
Spending by big tech on capital expenditure (capex) to support AI continues at a brisk pace, which could further boost Nvidia's revenue. The full impact of the easing of import restrictions on Nvidia's sales is likely to be felt in Q3.
Investors view Nvidia stock as a buy, with the company selling for just 31 times next year's earnings, considered an attractive price for a company with so much opportunity. Nvidia's market cap reached $4 trillion, making it the first company to achieve this milestone.
In conclusion, the resumption of H20 chip sales to China could significantly boost Nvidia's quarterly revenue and further solidify its position as a leader in the AI and data center markets.
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