A Trade Deal Will Send (NVDA) Nvidia Stock Back on Larger Bull Trend!
Following encouraging remarks from Chinese and US officials, Nvidia's stock (NVDA) is beginning to rebound, which might rekindle the company
Quick overview
- Nvidia's stock is recovering due to positive comments from US and China officials, indicating potential growth.
- The company faced significant challenges earlier this year from U.S. export controls on AI chips, leading to a $5.5 billion impairment charge.
- A recent policy shift by President Trump to rescind the 'AI diffusion rule' has boosted optimism for U.S. chipmakers, with Nvidia's stock rising over 3%.
- Investors are watching Nvidia's upcoming earnings report on May 28 for insights into its performance amid ongoing competition and regulatory challenges.
Live NVDA Chart
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Following encouraging remarks from Chinese and US officials, Nvidia’s stock (NVDA) is beginning to rebound, which might rekindle the company’s development trajectory.
Navigating Regulatory Challenges
Earlier this year, Nvidia faced significant headwinds due to stringent U.S. export controls on AI chips, particularly the H20 model, leading to a $5.5 billion impairment charge . These restrictions severely limited Nvidia’s access to the Chinese market, which accounted for $17.1 billion in revenue last fiscal year.
Policy Shift Sparks Stock Market Optimism
In a recent policy shift, President Trump announced plans to rescind the Biden-era “AI diffusion rule,” which had imposed broad restrictions on AI chip exports . This move is seen as a boon for U.S. chipmakers, with Nvidia’s stock rising over 3% following the announcement . The policy reversal aims to simplify export regulations, potentially restoring Nvidia’s access to key international markets.
NVDA Chart Weekly – Buyers Need to Push Above the 50 SMA
From a technical perspective, Nvidia’s stock has surpassed the 100-day Simple Moving Average (SMA) at $115, a level that previously acted as resistance. The next critical resistance lies at the 50-day SMA around $120. A breakout above this level could signal a return to the long-term bullish trend.
Market Outlook
While the policy changes have injected optimism into Nvidia’s prospects, the company continues to face challenges, including competition from domestic Chinese firms and the need to navigate evolving regulatory landscapes. Investors will be closely monitoring Nvidia’s upcoming earnings report on May 28 for further insights into the company’s performance and outlook.
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