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NVIDIA’s stock price is up 5% in early trading Monday morning.
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The primary reason for the price jump is the announcement of a trade deal between the United States and China. NVIDIA has faced pressures from the ongoing trade war. The company was forced to take a $5.5 billion inventory write-down after export of its H20 chips to China was banned.
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9:28 am
One of the more notable analyst calls premarket is UBS defending NVIDIA. The bank lowered their price target to $175 (from a prior target of $180), but defended the company’s ability to hit $5.90 in earnings next year.
That would put NVIDIA at about 21X next fiscal year’s earnings at its opening share price of $122 today.
8:35 am
One of the most renowned technology investors in the world, Dan Benton, was featured in video over the weekend discussing his ‘rules for tech investing in 2025.’
One eyebrow-raising quote is he said NVIDIA has ‘a lot of runway for growth’ and that being negative on the stock is like ‘hating on Intel when PCs were first coming out.’ The conversation is about an hour long and could be a good listen to start your Monday morning.
7:54 am
Over the weekend, sources in NVIDIA’s supply chain reported the company is raising prices of new chips like its H200 and B200 in part to make up for lost sales of its H20 chips.
Another factor that could be playing into NVIDIA raising prices: Taiwan Semiconductor (NYSE: TSM) is reportedly charging more for chips produced from its Arizona plants. NVIDIA has been actively pushing to move production to Taiwan Semi’s Arizona plants, so it may be passing those cost increases along to customers.
Could today be an epic day for NVIDIA investors? We’re updating this live post throughout the day tracking NVIDIA on what could be a historic market day. Nasdaq Futures are up 3.9% as of 7:45 a.m. ET.
NVIDIA (Nasdaq: NVDA) futures are pointing to a big open. Futures point to NVIDIA’s stock price opening at $122, which would be a gain of 4.6% from where it closed on Friday. Let’s look at some of the major news moving NVIDIA’s stock today.
Trade Deal with China Announced: How it Impacts NVIDIA
The big news that will be impacting every stock in the market today is the announcement of a trade deal between the United States and China. Representatives from both countries met in Switzerland over the weekend and agreed to put a 90-day pause on reciprocal tariffs.
That doesn’t mean there will be no tariffs between the countries as existing 10% tariffs (for both countries) will remain, while the United States will continue levying a 20% ‘fentanyl tariff’ on China. That means the U.S. will continue imposing a 30% tariff on Chinese goods while American goods face a 10% tariff entering China.
That’s still an elevated environment, but markets are cheering the de-escalation with a country that was seen as the main adversary in the ongoing trade war that began in mid-February.
NVIDIA itself has faced pressures from the trade war. In April, the company filed forms with the SEC that it would take a $5.5 billion write down relating to its H20 chips designed for the Chinese market. New U.S. rules will block the export of these chips to the country. Investors have recently cheered news that the Trump Administration would remove ‘AI diffusion’ rules crafted by the Biden Administration limiting the export on AI chips across the world.
However, keep in mind that the Trump Administration will likely replace Biden’s ‘AI diffusion’ framework with new rules they’ve created. So, NVIDIA still faces pressures. In addition, recent legislation put forth by lawmakers would put strict tracking on GPUs sold around the world to ensure they don’t end up entering the Chinese market.
Other AI Stocks in Pre-Market Trading
NVIDIA’s share price is up about 4.6% in pre-market trading. Let’s see how that compares to key rivals in the AI space:
So far, NVIDIA seems to have the lowest ‘reaction’ to tariff news among its peer group. It will be interesting to track how these stocks all trade across the day.
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