Nvidia (NVDA) Leads Chip Stocks Despite CEO Selloff, as Tax Credit Fuels Nasdaq
Renewing policy support for US semiconductor production caused Nvidia's stock to soar today, contributing to further gains for the Nasdaq.
Quick overview
- Nvidia stock surged 2.6% today, contributing to a 0.8% gain in the Nasdaq Composite amid renewed policy support for US semiconductor manufacturing.
- The US Senate approved increased investment tax credits for domestic semiconductor facilities, enhancing incentives under the Biden administration's CHIPS and Science Act.
- Nvidia's stock has risen over 80% since early April, nearing its all-time high, with analysts predicting it could surpass a $4 trillion market cap soon.
- Investor enthusiasm is driven by Nvidia's leadership in AI and GPU technology, as well as the potential for new semiconductor plants in the US.
Live NVDA Chart
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Renewing policy support for US semiconductor production caused Nvidia’s stock to soar today, contributing to further gains for the Nasdaq.
Nvidia Drives Nasdaq Higher on Policy Boost
The Nasdaq Composite advanced 0.8% during today’s trading session as technology stocks led a broad rally on Wall Street. Nvidia (NASDAQ: NVDA) stood out once again, with its shares climbing approximately 2.6% intraday after a brief dip yesterday. The stock is now trading back near its all-time highs and added nearly $4 to its price in today’s move.
Investors are energized by a combination of policy news, revived optimism in the tech sector, and Nvidia’s sustained post-earnings momentum. The broader backdrop has been notably supportive for semiconductors, with market sentiment rotating strongly back into growth names after a cautious period in early June.
Fresh US Policy Incentives Spark Chip Rally
Wednesday’s gains among chip stocks were fueled by major legislative progress in Washington. The US Senate approved a measure increasing investment tax credits for domestic semiconductor facilities from 25% to 35%, a significant boost to the Biden administration’s CHIPS and Science Act incentives. The enhanced credits aim to supercharge onshore chip production in the face of intensifying global competition, particularly with China.
House lawmakers now aim to deliver the final bill to President Trump by July 4. Investors will be watching closely to see if the expanded subsidies translate into formal announcements of new semiconductor plants on US soil—an outcome that would represent both a geopolitical and economic win for policymakers while further fueling demand for cutting-edge chip designs from leaders like Nvidia.
Nvidia’s Stunning Recovery Continues
Today’s rally extends Nvidia’s remarkable comeback, which has seen the stock price soar more than 80% since hitting a local low in early April. With today’s push, NVDA traded above $157 per share, nearing its record closing high of $158.71 set just last Friday.
Investor enthusiasm remains high for Nvidia’s long-term AI leadership and dominant position in GPU technology. Analysts note that with current momentum, Nvidia could break decisively above its all-time highs in the coming days—and possibly even aim for the psychologically significant $200 level in the months ahead.
Market Eyes $4 Trillion Valuation Milestone
Beyond the short-term trading action, Wall Street strategists continue to upgrade their medium-term outlook for Nvidia. Some predict that Nvidia could surpass a $4 trillion market cap in the coming months, potentially reclaiming its crown from Microsoft as the world’s most valuable publicly traded company.
Such projections rest on Nvidia’s entrenched position at the heart of the AI and data center boom. With accelerating adoption of AI infrastructure and ongoing government support for domestic semiconductor production, many investors see a long runway for revenue and profit growth—despite elevated valuations.
Conclusion: Today’s session highlights the renewed enthusiasm for technology and semiconductor stocks as government policy aligns with private-sector demand. Nvidia’s rally showcases how powerful these tailwinds can be for market leaders, helping drive the Nasdaq toward new heights. As tax credits promise to supercharge US chip manufacturing, investors remain focused on Nvidia’s ability to capitalize on the coming AI era—and perhaps even redefine the global leaderboard of corporate giants.
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