Why Nvidia stock is up around 1% today

Shares of Nvidia edged higher on Friday as investors turned their attention toward next week's Computex conference, which could provide the next major catalyst for the world's most valuable chipmaker.

The stock rose about 1% to $215.41 in early trading and is up roughly 15% so far this year.

Following last week's blockbuster earnings report, investors are increasingly focused on what chief executive Jensen Huang may reveal during his keynote address at Computex, one of the semiconductor industry's most closely watched annual events.

Huang is scheduled to speak in Taipei on Monday morning local time.

Computex seen as potential stock catalyst

Analysts believe the event could help reignite momentum after Nvidia's shares struggled to sustain gains despite another quarter of results that exceeded Wall Street expectations.

Lynx Equity said Computex could serve as an important catalyst for the stock, noting that Nvidia has lagged several AI hardware peers in recent weeks despite maintaining its dominant position in artificial intelligence infrastructure.

The firm expects Huang to provide additional details on Nvidia's expanding CPU strategy, including the company's estimate of a $200 billion addressable market tied to agentic AI workloads.

Investors are also expected to look for more clarity around the rollout of Nvidia's next-generation Rubin platform, which management has linked to a broader $1 trillion AI systems opportunity.

Networking infrastructure is another area analysts expect Huang to address as hyperscalers continue expanding AI data-center deployments.

Lynx said concerns surrounding competition from application-specific integrated circuits, or ASICs, developed by large cloud providers have weighed on Nvidia's valuation multiple despite continued strong demand for its products.

Taiwan investment highlights long-term commitment

Earlier this week, Huang reinforced Nvidia's long-term commitment to Taiwan's technology ecosystem during an event marking the launch of the company's new Taiwan campus.

He said Nvidia plans to increase annual spending with Taiwanese suppliers to as much as $150 billion, up from roughly $100 billion currently.

The announcement underscored Nvidia's deep ties to Taiwan Semiconductor Manufacturing Company, which remains the company's most important manufacturing partner.

The investment commitment also comes at a time when investors continue debating geopolitical risks surrounding Taiwan and the global semiconductor supply chain.

Valuation debate continues

Despite Nvidia's operational strength, investor sentiment has become more cautious following the stock's extraordinary gains over the past two years.

The recent post-earnings pullback has left Nvidia trading at a forward price-to-earnings ratio slightly above 22 times, according to FactSet data.

That compares with roughly 95 times forward earnings for Intel and about 47 times for Advanced Micro Devices.

Many analysts argue that valuation no longer fully reflects Nvidia's dominant role in AI infrastructure and accelerating global demand for compute capacity.

The average Wall Street price target has climbed to roughly $294 per share, while about 93% of analysts covering the stock maintain Buy-equivalent ratings.

For investors, Computex now represents the next opportunity for Nvidia to reinforce its position at the center of the AI spending boom and potentially provide fresh reasons for the stock to resume its upward trajectory.