Nvidia shares climb over 2% as AI giant’s earnings date nears; what should investors expect?

Shares of semiconductor giant Nvidia Corp on Monday climbed more than 2% as the company is set to declare its second quarter results on Wednesday.

Investors are keenly awaiting the results from Nvidia, the world's largest publicly listed company by market value, as its reports have become market-moving events.

In July, California-based Nvidia became the first American company to cross $4 trillion in market capitalisation.

Its stock is up roughly 37% over the last six months and nearly 32.54% year-to-date.

The company, whose chips are powering much of the world’s move in to Artificial Intelligence technology, had seen its stock struggle recently amid criticism that it and other AI superstars shot too high, too fast and became too expensive.

The now-reversed US ban on Nvidia’s high-end H20 chips export to China has erased billions of dollars in potential sales.

The company has taken a $4.5 billion hit due to unsold China-bound chips.

In April, the US government had said that H20 chip sales to China require a licence, which effectively cut off the AI giant’s ability to ship its top GPUs freely.

In response, the company stopped production of the chips, and asked suppliers such as Amkor and Samsung to suspend work on them.

The chips are Graphics Processing Units, or GPUs, a type of device used to build and update a range of AI systems.

On Friday, Nvidia Chief Executive Officer Jensen Huang said that the company is discussing a potential new computer chip designed for China with the Trump administration.

Huang visited chip foundry partner TSMC in Taiwan.

"My main purpose coming here is to visit TSMC," he told reporters.

Huang further said he came to thank TSMC, where they have taped out six brand-new chips, including a new GPU and a silicon photonics processor for Nvidia's next-generation Rubin-architecture supercomputers. Tape out refers to finalising the design of a chip so production can begin.

"This is the first architecture in our history where every single chip is new and revolutionary," he said. "We've taped out all of the chips."

In the first quarter, hyper-growth slowed, with revenue rising 69% year-over-year, but up only 12% quarter-over-quarter.

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