Nvidia Stock Skyrockets 13% in July—Here’s Why It Crushed the Market

Nvidia just flexed its market muscle—again. Shares blasted 13% higher in July, leaving competitors eating silicon dust. What lit the fuse?

AI Demand on Steroids

Another quarter, another data center spending spree. Hyperscalers keep shoveling cash into Nvidia’s GPUs like there’s no tomorrow—because for AI laggards, there might not be.

Guidance That Didn’t Suck

Wall Street expected a slowdown. Nvidia delivered a middle finger instead. Forward revenue projections smashed estimates—proving even analysts underestimate how much money can be made selling shovels in a gold rush.

The Shorts Got Roasted

Bears bet against the Jensen Huang hype train. Again. Their portfolios now smell like melted GPUs. (Pro tip: When a stock’s up 200% in a year, maybe don’t short it?)

So yeah—another month where Nvidia made ‘overvalued’ tech look like a bargain. Just wait till they start paying dividends… or buy Bitcoin with their spare change.

Nvidia's GB200 Grace Blackwell Superchip. Image source: Nvidia.

First $4 trillion company

Nvidia made history last month by becoming the first company with a market cap of $4 trillion. This move cemented Nvidia's position as the world's most valuable company, beating out other tech heavyweights, includingand. Nvidia has become the poster child for the accelerating adoption of AI, as its graphics processing units (GPUs) underpin the technology.

Another big development helped propel the stock higher. In a blog post published on July 14, Nvidia CEO Jensen Huang announced the company WOULD resume sales of H20 chips to customers in China after a three-month moratorium. After the ban was issued in early April, Nvidia had taken a $4.5 billion charge related to these H20 chips. The charge combined with the $4.6 billion in quarterly sales that had already occurred suggested there was more than $9 billion in quarterly revenue at stake.

In the wake of this announcement, several Wall Street analysts issued bullish takes on the chipmaker, citing the resumption of sales in this important market.

More to come

Nvidia is scheduled to report the results of its fiscal 2026 second quarter after the market close on Aug. 27, and investors are likely in for a pleasant surprise. Management was guiding for revenue of about $45 billion, which would represent growth of 50%, but that was before the company resumed chip sales to China. Nvidia had a limited supply of its H20 chips in stock, so the full impact of the easing of import restrictions likely won't be felt until Q3. Furthermore, Nvidia has a history of issuing conservative guidance, so the results will likely be higher than its forecast.

Finally, Nvidia controls about 90% of the data center GPU market, and spending by big tech on capital expenditure (capex) to support AI continues at a brisk pace. At the same time, Nvidia is selling for just 31 times next year's earnings, an attractive price for a company with so much opportunity.

That's why Nvidia stock is a buy.