Nvidia Rallies as Vera Rubin GPUs Enter Full Production
NVDA•Nvidia rebounded after Micron’s record Q2 earnings reignited confidence in AI semiconductor demand and confirmed mass production of its Vera Rubin GPUs. Investors remain cautious over intensifying GPU competition, margin pressure from memory suppliers, geopolitical export restrictions on China and uncertain durability of AI capital spending growth.
1. Rebound Fueled by Micron Earnings
Nvidia shares climbed after Micron reported record Q2 revenue and earnings, signaling robust demand for AI memory components. The upbeat results alleviated investor concerns about a slowdown in data-center spending, driving renewed optimism in Nvidia’s GPU-led growth trajectory.
2. Vera Rubin GPUs Enter Mass Production
The company confirmed that its next-generation Vera Rubin GPU architecture is now in full-scale production, a key milestone for handling larger AI models and high-performance computing workloads. Mass availability of these chips is expected to solidify Nvidia’s leadership in AI inference and training applications.
3. Competitive and Geopolitical Headwinds
Despite positive momentum, Nvidia faces intensifying rivalry from AMD and emerging AI chip startups, which could compress future margins. Additionally, memory supply constraints and evolving export controls on advanced semiconductors to China introduce execution risks and uncertainty around the sustainability of AI capex growth.
