Nvidia Stock Closes at Records, Nears $4.5T Market Cap Amid China Access
The U.S. government's support for chip manufacture and indications of loosened limitations on sales to China have propelled Nvidia's stock..
Quick overview
- Nvidia's stock reached an all-time high of $183.10, driven by U.S. government support for chip manufacturing and eased sales restrictions to China.
- The company's rally is supported by a recent meeting between CEO Jensen Huang and President Trump, focusing on trade policies and domestic semiconductor production.
- Nvidia regained partial access to the Chinese market for its H20 chips, alleviating potential revenue losses from previous export restrictions.
- Despite strong momentum, analysts warn of increasing competition in China that may challenge Nvidia's market dominance.
Live NVDA Chart
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The U.S. government’s support for chip manufacture and indications of loosened limitations on sales to China have propelled Nvidia’s stock rise, which shows no signs of abating.
Nvidia Hits New Records with Policy Tailwinds
Nvidia (NASDAQ: NVDA) continued its upward trajectory this week, reaching an all-time high of $183.10 on Tuesday. The latest boost came after a White House meeting between CEO Jensen Huang and U.S. President Donald Trump, reportedly focused on China trade policies, tariffs, and strengthening domestic semiconductor manufacturing.
This meeting preceded Apple CEO Tim Cook’s announcement of a $100 billion U.S. investment, reinforcing Washington’s commitment to high-tech manufacturing. Investor optimism helped propel the Nasdaq Composite up 1.39% on the day.
NVDA Chart Daily – Up 108% Since April’s Low
Despite a brief intraday dip linked to market reactions over Nvidia’s proposed revenue-sharing arrangement with the U.S. government on AI chip sales in China, strong buying momentum pushed the stock to close at record levels.
AMD’s Parallel Gains and Revenue-Sharing Deal
Nvidia’s rally also coincided with expectations that Advanced Micro Devices (AMD) will soon receive export licenses to sell AI chips in China. Under the agreement, both Nvidia and AMD will share 15% of sales proceeds from these chips with the U.S. government, a move seen as balancing national security concerns with corporate market access.
Restored China Access and Market Implications
In a major policy shift, Nvidia regained partial access to the Chinese market for its H20 chips, reversing export restrictions imposed in April. This change alleviates some pressure from the potential $5 billion revenue loss Nvidia faced under the ban. Still, analysts caution that Chinese competitors are rapidly gaining ground, making it unlikely that Nvidia will reclaim its former market dominance in the region.
Market Cap Milestone and Investor Outlook
Nvidia’s market value came close to surpassing $4 trillion, underscoring its status as a dominant force in global tech. However, with valuations already stretched, the company’s upcoming earnings will be pivotal in determining whether this momentum can be sustained or if a pullback is in store.
Conclusion: Nvidia’s latest surge reflects a confluence of favorable policy developments, renewed access to a critical market, and unrelenting demand for AI chips. While near-term prospects look promising, competition in China and the weight of high expectations will test whether the company can maintain its historic rally in the months ahead.
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