Nvidia climbs nearly 3% in pre-market trading ahead of Q1 earnings

Shares of Nvidia Corp., the world’s second largest company, surged in pre-market trading on Tuesday, ahead of its first quarter earnings report, which is slated to be released on May 28.

In the pre-market session, Nvidia stock was nearly 3% higher.

At 8:27 AM EDT, the stock was at $134.53, up $3.24, or 2.47%.

The Nvidia shares gained in tandem with a rise in the US stock futures.

Wall Street’s key stock indices are set for gains with investors optimistic about the US and European trade talks.

As of 7:59 AM New York time,the S&P 500 contracts rose 1.5%, the Nasdaq 100 futures were 1.6% higher, andthe Dow Jones Industrial Average Futures added 1.4%.

Nvidia results

Investors are eagerly awaiting the artificial intelligence- chip company results for answers on how much US chip curbs on China will cost the company.

Last month, the Trump administration had imposed export limits on Nvidia’s H20 chip – a move the company had said would result in $5.5 billion in charges.

Last week, Nvidia CEO Jensen Huang, who pegged the market for AI chips in China at roughly $50 billion next year, had said his company had walked away from $15 billion of sales in the country after the curbs.

The company is planning to launch a new AI chipset for China based on Nvidia’s latest generation Blackwell architecture, reported news agency Reuters.

The GPU or graphics processing unit will be part of Nvidia’s latest generation Blackwell-architecture AI processors and is expected to be priced between $6,500 and $8,000, well below the $10,000-$12,000 the H20 sold for, the Reuters report said.

It will be based on Nvidia’s RTX Pro 6000D, a server-class graphics processor, and will use conventional GDDR7 memory instead of more advanced high bandwidth memory (HBM), it added.

Recently, Huang called US semiconductor curbs on China “a failure,” saying they have only pushed Chinese rivals such as Huawei to speed up development of homegrown chips.