What Happened?
Shares of leading designer of graphics chips Nvidia (NASDAQ: NVDA) jumped 3% in the morning session after Reuters reported the Trump administration officially launched a multi-agency review that could greenlight the first shipments of Nvidia’s H200 AI chips to China.
This procedural milestone signals a concrete step toward fulfilling President Trump’s pledge to reopen the Chinese market, which Nvidia CEO Jensen Huang previously estimated at billions of dollars in potential revenue. Also, Tigress Financial raised its price target on the stock to $350 and repeated its "Strong Buy" rating, pointing to the company's lead in AI infrastructure and data-center computing. Adding to the bullish sentiment, a Bernstein analyst noted that the stock looked "unusually cheap" and maintained an Outperform rating.
After the initial pop the shares cooled down to $179.54, up 3.2% from previous close.
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What Is The Market Telling Us
Nvidia’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 3.6% as Oracle's disappointing earnings report sparked fears about stretched spending on artificial intelligence, leading to a broader sell-off in the sector.
The cloud-computing giant Oracle, a company that buys many of Nvidia's data center chips, reported quarterly revenue that missed analysts' expectations. At the same time, Oracle stunned markets by raising its capital spending outlook for fiscal 2026 by $15 billion to a total of $50 billion. This combination fueled concerns among investors that the massive spending on AI infrastructure might be unsustainable, stoking fears of an 'AI bubble.' The negative sentiment spread across the tech landscape, affecting other AI-related companies. Shares of other chipmakers also fell as investors reassessed the short-term outlook for the entire AI sector.
Nvidia is up 29.8% since the beginning of the year, but at $179.54 per share, it is still trading 13.3% below its 52-week high of $207.04 from October 2025. Investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $13,467.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
