Nvidia (NVDA) Stock Returns Above $140, Eyes the Highs as Tech Stocks Rally
Nvidia shares are rising on renewed tech confidence, new policy speculation, and ongoing post-earnings momentum—despite several profit...
Quick overview
- Nvidia shares are rising due to renewed tech optimism and speculation about a potential policy shift regarding chip export restrictions.
- The company's stock has climbed over 60% since early April, surpassing $140 per share and moving closer to its all-time high of $153.15.
- Despite impressive earnings that exceeded expectations, Nvidia's profitability metrics showed some weaknesses, leading to cautious sentiment among analysts.
- The broader tech sector is benefiting from strong demand in AI and energy, with developments in the power sector highlighting the impact of AI on energy infrastructure.
Nvidia shares price is rising on renewed tech confidence, new policy speculation, and ongoing post-earnings momentum—despite several profit indicators falling short of lofty forecasts.
Nvidia Surge Fuels Nasdaq as Chip Stocks Lead the Way
Tech stocks are once again in the driver’s seat, with the Nasdaq climbing over 1% in today’s session. Among the standouts is Nvidia, whose stock is up roughly 3% intraday—about $4 higher—after opening with a bullish gap. The rally comes as Wall Street processes the company’s latest earnings report and speculation swirls around a possible policy pivot from the White House.
Nidia Share Price Chart Daily – Buying Momentum Continues
The gains help push NVDA above $140 per share, adding to a remarkable rebound that has seen the stock climb over 60% since hitting a low in early April. With momentum building, investors are eyeing a return to Nvidia’s all-time high of $153.15 set in January.
White House Policy Shift Hopes Add Fuel to Nvidia’s Climb
A key catalyst behind Nvidia’s current rally is unconfirmed but increasingly talked-about chatter that the Biden-era chip export restrictions—set to take effect on May 15—may soon be lifted under President Trump’s administration. These restrictions introduced a tiered ban on high-end chip exports to China, a policy originally aimed at curbing Chinese access to advanced AI processors.
If reversed or softened, the shift would reopen access to one of the most lucrative global markets for semiconductors and significantly ease the current inventory pressure facing U.S. chipmakers. For Nvidia, that would mean restored revenue streams and fewer operational constraints—potentially leading to a more favorable outlook for the rest of the year.
Market participants appear increasingly confident that a path is being carved out to allow chip exports to resume in some form, boosting sentiment not just around Nvidia but across the AI and semiconductor sectors more broadly.
Nvidia Earnings Impress—But With Caveats
Nvidia’s fiscal Q1 earnings, released earlier this week, provided further reason for optimism—though not without some caveats. The company once again surpassed headline expectations, posting earnings per share of $0.96 versus Wall Street’s $0.93 consensus. Revenue also topped forecasts at $44.1 billion compared to $43.29 billion projected.
However, beneath the strong topline numbers, some softness emerged. Adjusted gross margins came in at 61%, well below the expected 71%, while EBIT reached $21.64 billion—missing the $26.97 billion forecast. These weaker profitability metrics sparked some initial caution among analysts, though the broader narrative remains firmly positive thanks to strong demand drivers in AI, data centers, and gaming.
Broader Sector Tailwinds From AI Energy Demand
Adding to the bullish backdrop is a separate development involving Meta and Constellation Energy, which is lifting the broader power and utility sector. The agreement underscores the growing strain AI infrastructure is placing on energy grids—and the resulting opportunities for power providers. As major tech firms ramp up AI deployment, semiconductors and energy providers alike are positioning to benefit from the wave of demand.
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