Nvidia stock rises as AI market shifts; earnings in focus

Nvidia stock is up 15% in 2025 but trails Intel and AMD as AI focus shifts to CPUs and electricity. Shares rose despite China setbacks. Investors await May 20 earnings for AI demand signals.

Nvidia's stock has shown resilience in 2025, rising 15% year-to-date. However, it is now being outpaced by competitors like Intel and AMD, who are benefiting from increased demand for CPUs in AI inference workloads. The market focus has shifted from chip supply constraints to electricity supply and CPUs, which have become new bottlenecks in AI development. Despite Warm Springs Advisors reducing their Nvidia holdings by 4.8%, the stock remains a core part of their portfolio. Nvidia shares climbed nearly 5% on Monday, even though its CEO was excluded from a high-profile trip to China. This exclusion is seen as minor, given Nvidia's shrinking market share for advanced AI accelerators in China due to U.S. export restrictions. Investors are now focusing on AI demand outside China. Nvidia's recent revenue growth and sustained demand from hyperscale customers support a bullish outlook. No new stock split is expected soon, with trends suggesting the next may occur around 2028. The upcoming earnings report on May 20 is viewed as a key catalyst, with strong results and guidance anticipated to confirm expanding AI infrastructure demand.