NVIDIA Shares Climb on New AI Tech and China Sales Optimism
Company unveils Spectrum-XGS Ethernet for giga-scale AI data centers ahead of closely watched Q2 earnings report.
NVIDIA Corporation (NVDA) shares rose 1.72% to $177.99 as the chipmaker unveiled new technology aimed at connecting data centers into massive AI super-factories. The rally was also fueled by positive sentiment regarding an agreement with the U.S. government to resume chip sales to China and high expectations for its upcoming earnings report on August 27.
The company introduced its Spectrum-XGS Ethernet platform, a technology designed to link geographically distributed data centers, enabling them to function as a single, powerful AI computing resource. 'The AI industrial revolution is here, and giant-scale AI factories are the essential infrastructure,' said Jensen Huang, NVIDIA's founder and CEO, in a statement. The new platform addresses the power and capacity limits of individual facilities by creating 'giga-scale AI super-factories.' AI infrastructure firm CoreWeave will be among the first to adopt the new technology to connect its data centers.
Investor optimism was further bolstered by an agreement to resume chip sales to China, which is expected to generate $8 billion in revenue for the second quarter of 2025. This development comes as the market eagerly awaits NVIDIA’s quarterly results, which are seen as a key barometer for the health of the entire AI sector. Analysts polled by LSEG expect the company to report a 48% increase in earnings per share on revenue of approximately $45.9 billion.
NVIDIA's performance is critical for the broader market, as the company accounts for nearly 8% of the S&P 500. Its central role in the AI-driven tech rally has made its financial disclosures a pivotal event for investors, who will be watching closely to see if the company can sustain its rapid growth trajectory.