July 23 – Nvidia (NVDA, Financial) shares climbed 1.8% on Wednesday morning, extending a rebound after Tuesday's broader tech sell‑off.
Analysts point to growing demand for AI infrastructure as the key driver. Rothschild & Co Redburn's Timm Schulze‑Melander raised his price target on NVDA to $192 from $173, maintaining a “Buy” outlook. He notes that AI models' performance has improved roughly 5% per quarter since May 2023, spurring “huge spending” on Nvidia data‑center compute.
Market watchers will focus on capital expenditure figures when Google‑parent Alphabet (GOOGL, Financial) reports after the close. The bar for NVDA's own earnings remains high, with investors eager for updates on data‑center revenue.
The competition to win the AI compute is not easing. The Wall Street Journal reported that Tesla leader Elon Musk is pushing his xAI project to a target of at least a fraction of a million Nvidia GPUs to run its Grok chatbot, with 230,000 already deployed and another 550,000 in sight. xAI is teaming with Valor Equity Partners in an effort to raise up to $12 billion in leases of chips, according to the report.
Among peers, Advanced Micro Devices (AMD, Financial) edged up 1.3%, while Broadcom (AVGO, Financial) was flat in morning trade.
