Semiconductors
Nvidia Stock Faces a Choppy Q2, But Tailwinds Build for H2 Acceleration
Ahead of Nvidia's earnings, key suppliers and competitors are providing insights into the evolving AI hardware market, with a general sentiment indicating that while Blackwell's ramp-up will take time, the second half of 2025 is expected to see stronger performance. AMD faces significant revenue loss due to export restrictions on its MI308 GPUs to China, impacting its Q2 data center segment. Server makers like Super Micro, Dell, and HPE report easing supply chain bottlenecks but also challenges, including Super Micro's disappointing guidance due to China's H20 restrictions and NVL72 delays, and Dell and HPE facing mixed results and chip availability issues. Conversely, Vertiv, a thermal management solution provider, shows an encouraging inflection, and Foxconn, a crucial part of Nvidia's supply chain, projects strong AI server revenue growth driven by GB200 mass production. While major tech companies like Amazon, Alphabet, Meta, and Microsoft are projecting substantial capital expenditure for AI infrastructure this year, the pace of growth is expected to slow in 2026, suggesting that the peak years for AI capex growth may be behind us. The I/O Fund, a long-term Nvidia investor, highlights their active trading strategy, having bought and sold Nvidia shares based on technical and fundamental analysis, and currently anticipates a potential reversal or a push to new highs for Nvidia, depending on market dynamics.
Sign in to read the full article
Sign in with your I/O Fund account to check your plan access.
