Nvidia (NASDAQ: NVDA), the world’s largest company by market capitalization, has experienced a 17% decline in stock value since its peak in May. Investors are anticipating potential catalysts for a rally later in July, particularly as the major AI hyperscalers plan to spend approximately $650 billion on data center capital expenditures this year, with projections exceeding $1 trillion next year.
Key earnings reports will soon emerge from major players in the AI sector, including Microsoft (NASDAQ: MSFT), which is expected to provide capital expenditure guidance for the upcoming fiscal year. Additionally, Taiwan Semiconductor Manufacturing Company (NYSE: TSM) will report growth in AI semiconductor sales. Nvidia, which trades at 21.7 times forward earnings, may see a rebound in its stock price based on these developments, especially as they prepare to report earnings in late August.
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