Nvidia's Stock Soars: How Big Tech Earnings Will Drive the Next Wave for Chipmakers

NVIDIA was making slight progress early Tuesday as investors evaluated the challenges the company confronts in China due to competition from Huawei Technologies and anticipated financial reports from key U.S. tech firms.

Nvidia's shares increased by 0.1%, reaching $108.82 during pre-market hours. On Monday, however, the stock price dropped by 2.1%.

Shares fell following news that Huawei is planning to test The company plans to introduce itsAscend 910D AI chip primarily to domestic Chinese clients and anticipates receiving initial samples of these processors the following month, according to reports from The Wall Street Journal, which cited sources privy to this information.

Four out of the seven major big-tech corporations will report results This week, Meta Platforms and Microsoft will report their earnings on Wednesday, succeeded by announcements from Amazon.com and Apple on Thursday. Investors are particularly interested in tracking capital expenditures, as recent reports suggest that major technology firms may be cutting back on investments in data centers.

Amazon and Microsoft have both indicated this as well. aren’t changing their AI spending plans.

We've been aware of the reports about Microsoft's terminated leases and still think these concerns are exaggerated," stated Jamie Meyers, a senior analyst at Laffer Tengler Investments. "It's typical for companies investing billions like this to initiate or terminate agreements; not every contract ends up being realized due to various reasons.

The parent company of Google, Alphabet, has already announced its financial results and maintained its forecast for capital spending this year at $23 billion.

Other semiconductor companies were also seeing increases; for instance, Advanced Micro Devices was up by 0.4%, and Broadcom was climbing by 0.1% during the pre-market session.

Send your message to Adam Clark at adam.clark@barrons.com