<div id="readability-page-1"><p>Shares of<strong> Nvidia </strong><span>(NVDA<span> -0.44%</span>)</span> surged in July, jumping 12.6%, according to data supplied by S&amp;P Global Market Intelligence.</p> <p>The catalysts that sent the semiconductor specialist higher were ongoing developments in the field of artificial intelligence (AI) and a new benchmark for the stock.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Mjg4NzIvbnZpZGlhLWdiMjAwLWdyYWNlLWJsYWNrd2VsbC1zdXBlcmNoaXAuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Mjg4NzIvbnZpZGlhLWdiMjAwLWdyYWNlLWJsYWNrd2VsbC1zdXBlcmNoaXAuanBnJnc9NzAw"/></p><p>Nvidia's GB200 Grace Blackwell Superchip. Image source: Nvidia.</p> </div> <h2>First $4 trillion company</h2> <p>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, including <strong>Microsoft</strong> and <strong>Apple</strong>. Nvidia has become the poster child for the accelerating adoption of AI, as its graphics processing units (GPUs) underpin the technology.</p> <p>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.</p> <p>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.</p>  <h2>More to come</h2> <p>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.</p> <p>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.</p> <p>That's why Nvidia stock is a buy.</p>                                                                            </div>

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<p>Nvidia's stock surged 12.6% in July, driven by advancements in AI and the resumption of H20 chip sales in China after a three-month ban. The company became the first to reach a $4 trillion market cap, surpassing Microsoft and Apple. Analysts are optimistic ahead of Nvidia's fiscal Q2 report on Aug. 27, anticipating revenue growth of 50% due to resumed sales. With a dominant 90% share in the data center GPU market and attractive valuation at 31 times next year's earnings, Nvidia is viewed as a strong buy.</p>

- Nvidia's shares rose 12.6% in July, driven by advancements in artificial intelligence and the launch of its GB200 Grace Blackwell Superchip.  
- The company became the first to reach a $4 trillion market cap, surpassing competitors like Microsoft and Apple, and announced the resumption of H20 chip sales in China after a three-month halt.  
- With strong revenue growth expected and a dominant position in the data center GPU market, analysts view Nvidia stock as a favorable investment opportunity.

Why Nvidia Stock Popped 13% in July