• NVIDIA shares extend gains to 5.2%, continuing a strong upward trend in May 2025.
  • The rally comes ahead of the company's fiscal Q1 2026 earnings report on May 28, with analysts expecting robust results.
  • Major tech investments in AI infrastructure and NVIDIA's market dominance are driving investor optimism.

AI Chip Leader Extends Rally

NVIDIA's stock surged another 5.2% in midday trading, building on earlier gains this month as investors continue betting on the company's AI leadership. The move comes just weeks before what analysts expect to be another strong earnings report, with Wall Street anticipating 44% EPS growth driven by unrelenting demand for AI accelerators.

"The Blackwell architecture rollout has been nothing short of spectacular," said one tech sector analyst who asked not to be named while discussing client positions. "When your entire annual production sells out before launch, that tells you everything about NVIDIA's pricing power and market position."

Tech Giants Fuel Demand

The rally coincides with massive AI infrastructure spending announcements from Microsoft ($80 billion planned for FY2025) and Meta Platforms ($64-72 billion forecast). Both companies rely heavily on NVIDIA's GPUs for their AI workloads, creating what one portfolio manager called "a virtuous cycle of demand."

Market technicians note the stock has recovered impressively from a 20% pullback earlier this year caused by China export concerns. With the Blackwell B100/B200 chips now shipping and the entire 2025 production run already spoken for, short-term supply appears to be the only constraint on growth.

Earnings Preview

All eyes now turn to the May 28 earnings release, where investors will scrutinize guidance for the Blackwell ramp and any updates on competitive threats. The mean analyst price target of $163.12 suggests significant upside potential remains, though some bears warn of valuation concerns at current levels.

NVIDIA declined to comment on the stock movement, maintaining its typical quiet period ahead of earnings. Trading volume was 35% above average, indicating strong institutional participation in the rally.