Nvidia’s stock saw a positive uptick on Monday after experiencing a sharp decline last week. The company, known for its AI-driven technology, is preparing for the impact of earnings reports from major tech companies in the coming days. As of mid morning, Nvidia’s shares had risen by 3.6% to reach $789.08 following a 10% drop to $726 at Friday’s close.

The chip sector has faced challenges during this earnings season, with Taiwan Semiconductor Manufacturing (TSM) revising its annual growth forecast for the semiconductor industry downward. This caused turbulence in chip stocks despite an emphasized demand for processors used in artificial-intelligence technology.

Yves Bonzon, chief investment officer at Julius Baer, expressed that while consensus earnings have been negative since the start of the year and there are risks associated with AI investment momentum slowing down; he believes that it is unlikely to significantly impact markets during this first-quarter earning season. For Nvidia to regain its previous highs and explore new levels, it will require indications of increased investments in AI hardware from major tech companies reporting their earnings this week including Meta Platforms (Facebook), Microsoft (MSFT), and Alphabet (Google).

These tech giants are significant purchasers of Nvidia’s graphics processing units but have also been developing their own alternatives internally – creating a dual challenge for Nvidia: ensuring continued financial support towards AI data centers along with signaling intent to acquire their new Blackwell chips instead of opting for custom or more affordable alternatives.

Other prominent chip makers were also on an upward trajectory as Advanced Micro Devices gained 1.5%, while Intel saw an increase by 0.4%. Up until Friday’s closing session, Nvidia shares had recorded a 4% gain compared against S&P500 index which rose by 4.%1and Nasdaq Composite Index which experienced a rise of 1.%