"Unabated Progression": The Tech Shares Gaining Momentum This Week That Has Everyone's Attention

Nvidia, a leading semiconductor company valued at $4 trillion, is gearing up for a significant announcement and its earnings report this week. The tech giant's CEO, Jensen Huang, has hinted at a new product designed for AI data centers, a follow-on to their H20 product.

However, the decision about this new product is not entirely in Nvidia's hands. The U.S. government is involved, and there's a potential joint announcement with Intel on the horizon, which could see the U.S. taking a 10% ownership slice of Intel.

The AI market has been under scrutiny lately, with OpenAI CEO Sam Altman dubbing it a "bubble." This label has had an impact, and Nvidia's stock has been affected by the market's uncertainty. In April, the company's share price took a sharp fall due to the Trump administration's tariff wars.

Despite these challenges, Nvidia remains the dominant player in the AI hardware market. Its early strategic focus on highly specialized GPUs for AI applications has fueled explosive growth, establishing it as the market leader since the early 2020s.

The company's stock has since clawed back about three-quarters of those losses. Analysts at Miller Tabak and Zacks Investment Management have expressed confidence in Nvidia's growth, with Matthew Maley, chief market strategist at Miller Tabak, stating that the impact of Nvidia's earnings report will be larger than usual.

Brian Mulberry, client portfolio manager at Zacks Investment Management, stated that growth at Nvidia is "rock solid." However, if Nvidia's quarterly revenue is up less than 70% year over year, its share price might fall. A growth rate of that magnitude would be a major coup for most other companies, but it would alarm investors for Nvidia due to concerns about a potential slowdown.

Nvidia's stock price fell to $174 from $182 in 48 hours due to proponents of the AI bubble theory. However, Roach, in comments to Reuters, stated that Nvidia's commentary on the demand side should be more bullish due to increased capex guidance from its largest customers.

The company is also facing tough competition from a compatriot company named DeepSeek, which rolled out a discount AI model that astonished the market at the beginning of 2025. Despite this, Nvidia's more diversified set of products and potentially a wider variety of clients could give it an edge.

Multiple analysts have adjusted their projections for Nvidia's quarterly report, with a higher price target of $194 per share for the 12-month period. As Nvidia prepares to report its earnings, investors will be closely watching to see how the company navigates the challenges in the AI market and the broader economic landscape.