Nvidia (NVDA) inventory surged over 5% on Tuesday, pushing the corporate’s market capitalization again above $3 trillion for the primary time since February as a flurry of commerce information bolstered prospects for the AI chip large.
Nvidia CEO Jensen Huang stated Tuesday the chipmaker will ship its chips to Saudi Arabian AI firm Humain for its huge information middle plans.
A report from Bloomberg on Tuesday additionally indicated the Trump administration could minimize a deal that may enable the UAE to buy “greater than 1,000,000” Nvidia chips, greater than present limits set out by Biden’s chip guidelines.
Wedbush analyst Dan Ives informed Yahoo Finance Tuesday these offers reveals the secular AI chip demand story is “not nearly China.”
Nvidia is set to report its first quarter earnings for its fiscal yr 2026 on Might 28.
Learn extra about Nvidia’s inventory strikes and right this moment’s market motion
Nvidia’s rally Tuesday follows Monday’s acquire that was a part of a bigger surge within the “Magnificent Seven” Massive Tech shares after the Trump administration quickly slashed tariffs on Chinese language imports to 30% from as excessive as 145% for 90 days, signaling a deescalation within the mounting US-China commerce warfare.
Nvidia, Apple (AAPL), and Microsoft (MSFT) have taken turns because the world’s most dear firm over the previous yr. However Nvidia has fallen behind, failing to notch the No. 1 spot since January.
The AI chipmaker has additionally underperformed the S&P 500 (^GSPC) to date in 2025 for the primary time in years as macroeconomic uncertainty as a consequence of Trump’s commerce warfare and rising scrutiny of Massive Tech’s AI investments put shares beneath stress.
Trump’s commerce insurance policies have each helped and damage Nvidia.
The administration has carried out an efficient ban on gross sales of Nvidia’s chips for China, a model of its prior-generation Hopper AI GPUs referred to as H20 tailor-made to adjust to US commerce restrictions. JPMorgan (JPM) analyst Harlan Sur projected that, total, Nvidia will lose as a lot as $16 billion within the present fiscal yr from the H20 ban.
The ban comes simply as competitors ramps up from Chinese language tech agency Huawei, which is reportedly poised to start delivery chips aggressive with Nvidia’s older Hopper chips.
On the identical time, the Trump administration has stated it is scrapping a extra sweeping Biden-era coverage, the so-called AI diffusion rule, that was set to restrict exports of Nvidia AI chips to most international locations starting in Might.
The ensuing push-and-pull impact on Nvidia shares from the commerce rule modifications in April got here after the AI chip inventory suffered a large blow to start out 2025 when an inexpensive AI mannequin from Chinese language startup DeepSeek prompted questions in January over whether or not US tech corporations actually need to spend a whole bunch of billions on AI infrastructure (together with Nvidia’s chips).
