Nvidia stock (NASDAQ: NVDA) is showing signs of a strong rebound on Monday as it surged over 2% in the premarket trading.
The climb came amid overall calm on Wall Street after US President Donald Trump softened his stance on imposing harsh tariffs on China.
US stock futures also displayed impressive recovery after the news, with Dow futures jumping 450 points on Monday, making it a good time to invest $10K or more in the stock markets.
Nvidia stock gains align with a broader market rebound, with major tech stocks and indices recovering after last week’s sell-off.
Nvidia stock: Why it is climbing today?
Nvidia’s stock got an early boost on Monday, as investors started shrugging off last week’s losses.
The chipmaker has been in the spotlight because of trade tensions between the US and China, as its AI chips and semiconductor tech are a big deal for data centers and AI applications, so any disruption hits Nvidia hard.
But after President Trump hinted at a softer approach on tariffs, investors breathed a sigh of relief.
The stock jumped more than 2% in premarket trading, outpacing much of the broader tech sector. China is a huge market for Nvidia, so any easing of trade conflicts helps protect its revenue and growth outlook.
The rebound also reflects a bigger trend: the market overall is recovering as geopolitical worries ease and tech sentiment improves.
The year 2025 has not been great for Nvidia China’s strategy as the chipmaker found itself in the geopolitical crosshairs between the two superpowers.
China represents a critical market for Nvidia, accounting for about 13% of its global revenue and approximately 25% of its graphics unit sales.
Nvidia’s cutting-edge AI chips power data centers and the AI infrastructure of major Chinese tech companies.
Nvidia’s China problems
China’s ban on certain Nvidia chips adds a tricky new challenge for the company in the region.
In 2025, Beijing ramped up restrictions on US-made AI chips, including some of Nvidia’s top models, as part of a bigger push for technological self-reliance and a response to rising trade and tech tensions with the US.
The ban mainly hits high-performance chips used in AI and data centers, which are central to Nvidia’s lineup.
Nvidia is facing some real challenges as the ban shakes up its usual supply chains and limits access to the Chinese market.
To navigate this, the company has been adjusting its sales strategy, trying to keep some business going under strict rules.
That even includes sending a portion of Chinese sales revenue back to the US government to stay in line with export regulations.
It must be noted that the ban doesn’t mean Nvidia is completely out of Chinese markets as still many lower-end consumer GPUs and older NVIDIA models remain available, and there is an active secondary/repair market in China.
But access to the newest, highest-performance AI accelerators is highly constrained and risky to procure because of export controls and tighter inspections.
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