Do Not Sleep on This Fast Rising Stock after the China-USA Trade Deal
Nvidia has managed to regain much of its lost ground after the trade deal between China and the United States was announced.
Quick overview
- Nvidia's stock has surged by 2.09% in the last 24 hours, following a trade deal between China and the United States that reduced tariffs.
- Despite facing challenges such as a ban on its powerful H20 chips in China, Nvidia anticipates generating $43 billion in revenue for the first fiscal quarter of 2026.
- The company is preparing a less powerful version of the H20 chip to maintain its market share in China, despite ongoing competition from Huawei.
- Nvidia may encounter supply chain issues due to a downgrade in guidance from its supplier Foxconn, which could impact its expected earnings.
After China and the United States agreed to play nice with each other over tariffs this week, one stock shot up faster than most of the market. Nvidia (NVDA) is quickly rising to the top once more.
Nvidia was one of the best performing stocks throughout 2023 and 2024. It had a rougher 2025 with tariffs impinging on its business and allegations of creating a monopoly in China. Now, it has gained 2.09% over the last 24 hours after gaining 12% over the previous two days.
Few other stocks have managed to perform this well following the trade deal made between China and the United States to greatly reduce tariffs for each other. Once again, Nvidia is rapidly rising and is poised to be one of 2025’s best performing stocks.
Even though Nvidia’s powerful H20 chips are banned in China, the company still expects to rake in about $43 billion for the first fiscal quarter of 2026. The company is preparing a less powerful version of the H20 to sell in China to get around the bans, so that they can keep a large market share in that vitally important part of the world.
Where Nvidia Might Have Trouble
Nvidia is currently benefiting tremendously from the greatly reduced tariffs, but the company may run into a supply problem in the near future. One of their suppliers- Foxconn, which makes servers for Nvidia, has had to downgrade their guidance for the full year.
The company made this decision based on how they expect tariffs to affect them. The company also supplies Apple, and much of the production happens in Mexico and China- two countries where the United States has enacted stiff tariffs in recent months.
If Nvidia runs into a supply chain problem, they could lose clients or at least not make as much as they expect to in the coming quarter. Nvidia is also facing powerful competition from Huawei in China, as that company is making a product designed to compete directly with Nvidia’s AI chips.
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