Nvidia shares climbed to $117 in Thursday trading, buoyed by growing optimism that U.S.-China chip tensions may be easing and renewed confidence in the chipmaker’s growth prospects. The move comes as investors closely monitor geopolitical developments and corporate earnings in the global semiconductor sector.
After a period of volatility, Nvidia’s stock rose more than 3% to $117.06, marking a notable rebound from recent lows. The company’s shares had previously retreated nearly 20% over the past six months, reflecting investor concerns about tightening U.S. export restrictions and intensifying competition from Chinese chipmakers.
However, the latest uptick signals that market sentiment may be shifting as diplomatic signals point to a potential thaw in cross-border technology trade.
Industry analysts note that Nvidia remains a pivotal player in the artificial intelligence (AI) and data center markets, sectors that continue to see robust demand despite regulatory headwinds.
The company’s CEO, Jensen Huang, recently emphasized the importance of the Chinese AI market, describing it as a “tremendous loss” if U.S. firms were to be locked out. Huang’s comments highlight the stakes for Nvidia, which has long relied on China as a major growth engine.
With Nvidia scheduled to report quarterly earnings on May 28, investors are looking for further clarity on the company’s outlook. Wall Street analysts currently expect Nvidia to post a 65% year-over-year revenue increase, underscoring the company’s continued leadership in high-performance computing and AI chips.
Recent positive earnings from major technology partners, including Meta and Microsoft, have also contributed to Nvidia’s stock momentum. Both companies have raised their capital expenditure forecasts for AI initiatives, signaling ongoing demand for Nvidia’s advanced graphics processing units (GPUs).
Despite the recent rally, market watchers caution that the environment remains dynamic. The semiconductor industry is highly sensitive to policy changes and global supply chain shifts. Still, Nvidia’s ability to reclaim its 50-day moving average and its strategic positioning in AI and data center markets are seen as strong indicators of resilience.
As U.S.-China chip tensions show tentative signs of easing, Nvidia’s stock performance will remain closely watched by investors seeking exposure to the next wave of AI-driven growth. The company’s latest move above $117 reflects not only improving sentiment but also the high stakes in the ongoing global technology race.