From Yahoo Finance: 2025-05-13 08:51:00

Nvidia is poised to rejoin the $3 trillion club, with its market capitalization reaching $2.9997 trillion as of Monday’s close. The surge was part of a broader increase in Big Tech stocks following a temporary cut in tariffs on Chinese imports by the Trump administration.

Despite being a top company in past years, Nvidia has struggled to maintain its position as the most valuable. The company’s shares have underperformed the S&P 500 this year due to trade war uncertainty and increased scrutiny of Big Tech’s AI investments.

Trump’s trade policies have had mixed impacts on Nvidia. The administration implemented a ban on Nvidia’s chips for China, causing the company to potentially lose up to $16 billion in the current fiscal year. At the same time, competition from Huawei has intensified.

The Trump administration’s decision to repeal the AI Diffusion rule has caused fluctuations in Nvidia’s shares. Earlier in 2025, the company faced challenges from a Chinese startup’s AI model, prompting questions about the necessity of massive AI infrastructure investments.

Tech firms, including Meta and Microsoft, are continuing to invest heavily in AI infrastructure, boosting Nvidia’s stock. Microsoft reaffirmed an $80 billion spending plan on AI data centers, while Meta raised its 2025 capital expenditure outlook to $72 billion.

Read more: Nvidia poised to rejoin $3 trillion club after US-China trade war deescalation