Nvidia Stock Climbs as Cathie Wood Jumps Back In

• Nvidia’s (NVDA) stock increased 1.3% to $118.67 in premarket trading, fueled by the Trump administration’s decision to rescind the AI diffusion rule, enhancing Nvidia’s global AI chip market prospects.
• Cathie Wood’s Ark Invest acquired 107,661 Nvidia shares, reflecting strong investor confidence in Nvidia’s pivotal role in AI innovation and growth.

Nvidia’s (NVDA) stock rose 1.3% to $118.67 in premarket trading on Thursday, building on a 3.10% gain from the previous session, driven by the Trump administration’s decision to rescind the AI diffusion rule. This Biden-era regulation, proposed in its final days, aimed to restrict exports of advanced AI chips to certain countries, potentially limiting Nvidia’s global market reach. The rule’s repeal, confirmed by the Department of Commerce, is seen as a catalyst for Nvidia’s recent stock performance, as it removes barriers to selling high-performance chips critical for AI, data centers, and machine learning. The global AI chip market, projected to reach $296 billion by 2030, underscores the significance of this policy shift for Nvidia, a dominant player in GPU technology. Investors view the decision as a boon for Nvidia’s growth, particularly in markets like China, where demand for AI infrastructure is surging.

JUST IN:

Cathie Wood and Ark Invest bought Nvidia $NVDA today https://t.co/tk5CKChmgM

— Ark Invest Daily (@ArkkDaily) May 8, 2025

Adding to the momentum, Cathie Wood’s Ark Invest purchased 107,661 Nvidia shares on Wednesday, signaling strong confidence in the company’s trajectory. Ark, known for its focus on disruptive technologies, has a history of strategic investments in AI-driven firms, and this move reflects optimism about Nvidia’s role in the AI revolution. The acquisition aligns with broader market sentiment, as tech stocks have a tendency to rally amid expectations of fewer regulatory hurdles under the new administration. Nvidia’s chips, powering everything from generative AI models to autonomous vehicles, position it as a cornerstone of technological innovation. The stock’s gains and Ark’s investment highlight Nvidia’s resilience despite earlier tariff-related concerns, with the company’s focus on annual chip updates and expanding AI systems driving profitability. As the U.S. aims to maintain AI dominance, Nvidia’s strengthened market position and investor backing suggest a robust outlook for sustained growth.

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