Nvidia Stock Soars to Highest Since January, Record High in Sight

• NVIDIA Corporation (NVDA) shares rose 2.6% to $147.90 on Tuesday, nearing a record close of $149.43 from January 6, driven by a nearly 10% surge since its May 28 earnings report, which outperformed expectations despite a $2.5 billion revenue loss from a China export ban.
• The broader chip sector rallied, with Qualcomm (QCOM) up 1.68% to $155.71, Marvell (MRVL) up 6.26% to $75.21, Intel (INTC) up 6.42% to $22.55, AMD (AMD) up 6.83% to $138.43, Broadcom (AVGO) up 3.94% to $263.77, and TSMC (TSM) up 4.65% to $220.09, fueled by strong tech stock inflows.
• Despite earlier declines to a low of $94 on April 4 due to Chinese competition and trade restrictions, NVIDIA’s recovery, supported by AI chip deals with Saudi Arabia and the UAE, briefly made it the world’s most valuable company in June.

The semiconductor sector is experiencing a robust resurgence, with NVIDIA Corporation (NVDA) leading the charge as its stock surged 2.6% to close at $147.90 on Tuesday, marking its highest level since a record close of $149.43 on January 6. This rally reflects NVIDIA’s strong recovery from earlier challenges, driven by a stellar first-quarter earnings report on May 28 that exceeded Wall Street expectations despite a $2.5 billion revenue hit from a U.S. export ban on its H20 chips to China, with a projected $8 billion loss in the second quarter. Since the earnings release, NVIDIA’s shares have climbed nearly 10%, outpacing the S&P 500’s (SPX) 3.5% gain in the same period, bolstered by significant deals to supply AI chips to Saudi Arabia and the United Arab Emirates, which briefly propelled NVIDIA ahead of Microsoft (MSFT) as the world’s most valuable company in early June.

The broader chip industry also saw substantial gains on Tuesday, fueled by renewed investor enthusiasm for technology stocks. Qualcomm Incorporated (QCOM) rose 1.68% to $155.71, Marvell Technology, Inc. (MRVL) advanced 6.26% to $75.21, Intel Corporation (INTC) gained 6.42% to $22.55, Advanced Micro Devices, Inc. (AMD) climbed 6.83% to $138.43, and Broadcom Inc. (AVGO) increased 3.94% to $263.77. U.S.-listed shares of Taiwan Semiconductor Manufacturing Company Limited (TSM), NVIDIA’s key contract manufacturer, jumped 4.65% to $220.09. This sector-wide rally aligns with a Bank of America (BAC) note indicating that tech stock inflows reached their highest level since June 2024, contributing to record closes for the Nasdaq 100 (NDX) and the Nasdaq Composite (COMP), which hit its highest level since February.

NVIDIA’s stock faced significant headwinds earlier in the year, dropping to a low of $94 on April 4 amid concerns over intensified competition from Chinese tech giant Huawei, which is developing an AI chip to rival NVIDIA’s prior-generation H100, and market turbulence from President Trump’s trade policies, including steep tariffs and the China export ban. Despite these challenges, NVIDIA’s strategic pivot to new markets and its dominant position in the AI chip sector have driven its recovery, with the company’s ability to innovate and secure large-scale contracts underscoring its resilience. The broader chip sector’s performance reflects growing confidence in the sustained demand for AI and computing technologies, though risks such as geopolitical tensions and competitive pressures in China remain critical factors for investors to monitor.

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