Why Nvidia Rallied More Than 24% in May

From NASDAQ: 2025-06-03 10:05:00

In May, Nvidia’s shares surged 24.1%, driven by an earnings beat and positive market sentiment. The company benefited from easing tariff tensions between the U.S. and China, leading to significant AI chip deals with Saudi Arabia and the UAE.

Nvidia’s growth outlook improved with major deals in the Middle East, as geopolitical tensions eased. Despite restrictions on chip sales to China, Nvidia beat Q1 expectations with revenue up 69%. The company’s Blackwell chip and AI innovations will be closely watched for future growth potential.

Investors should weigh risks like competition from custom AI chips and potential market slowdowns. Nvidia’s stock trades at 44 times earnings, with a balanced risk-reward profile. While not in the top 10 stock picks, Nvidia has historically delivered strong returns for investors.



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