Nvidia stock jumps 5% as company reaches $3 trillion market cap

From Yahoo Finance: 2025-05-13 12:20:00

Nvidia stock rose over 5% Tuesday, reaching a market cap of $3 trillion. CEO Jensen Huang announced plans to send chips to Saudi Arabian AI company Humain for data centers. Bloomberg reported a potential deal allowing the UAE to purchase “more than a million” Nvidia chips. Wedbush analyst Dan Ives highlighted the growing demand for AI chips beyond China.

Nvidia’s first quarter earnings for fiscal year 2026 are set to be reported on May 28. The stock’s rally followed a larger surge in Big Tech stocks due to a temporary US-China trade truce. Nvidia, Apple, and Microsoft have each held the title of world’s most valuable company. However, Nvidia has not held the top spot since January.

Trump’s trade policies have both helped and hurt Nvidia. The administration implemented a ban on sales of Nvidia chips for China, causing an estimated loss of up to $16 billion in the current fiscal year. Competition from Huawei, poised to ship chips competitive with Nvidia’s older models, poses a new challenge.

The Trump administration is repealing a Biden-era policy that would have limited exports of Nvidia AI chips to most countries. The push-and-pull effect on Nvidia shares from the trade rule changes in April follows a blow at the start of 2025 when a cheap AI model from Chinese startup DeepSeek prompted questions about US tech firms’ AI spending.



Read more at Yahoo Finance: Nvidia stock surges 5%, company rejoins $3 trillion club amid flurry of trade news