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:
Advanced Micro Devices (Nasdaq: AMD): Up 6.67%
Broadcom (Nasdaq: AVGO): Up 5.84%
Marvell (Nasdaq: MRVL): Up 8.7%
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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