"Nvidia's Stock Surge: How Policy Shifts and Market Moves Are Driving Growth"

Nvidia's stock has experienced notable movements recently, influenced by various policy changes and market dynamics. Below is a summary of key articles detailing these developments, each accompanied by a link to the original source for further reading.

1. Nvidia Stock Rises After Trump Revokes AI Order. What It Means for Chip Makers.

On January 21, 2025, Nvidia's stock increased by 1.1% following President Trump's revocation of an AI-related executive order previously signed by former President Joe Biden. This order had mandated AI developers to share safety test results with the government prior to public disclosure. The revocation suggests a potential relaxation of AI regulations under the new administration, a move perceived as favorable for innovation by industry critics of Biden's policies. Other chip makers, such as Advanced Micro Devices and Broadcom, also saw stock increases of 0.9% and 0.6%, respectively. Citi analysts project strong growth for chip makers in 2025, driven by AI spending, with ASIC suppliers like Broadcom and Marvell expected to outperform GPU makers like Nvidia and AMD.

Barron's

2. Dow Jones Rises After Trump Tariff Comments; Nvidia Rallies But Tesla, Apple Slide

On the same day, the Dow Jones Industrial Average and other major indexes traded higher in response to President Trump's comments about potential 25% tariff hikes on Canada and Mexico, excluding China. Nvidia's stock rose by 1.6%, adding to a previous 3.1% rally. This movement indicates investor optimism regarding Nvidia's prospects under the new trade policies.

Investors

3. Nvidia Stock Rises. Guess Who's Not Going to Trump's Inauguration.

Four days prior, on January 17, 2025, Nvidia's stock rose by 2.6% to $137.01 after Barclays raised its price target to $175, anticipating significant revenue from Nvidia's new Blackwell graphics processing unit. This gain helped recover from a previous 2% loss as investors rotated away from Big Tech stocks. Notably, Nvidia CEO Jensen Huang was absent from President Trump's inauguration, as he was visiting East Asia for the Lunar New Year.

Barron's

4. Nvidia Stock Starts 2025 Strong, But Biden's Chip Rules Threaten Momentum

At the beginning of 2025, Nvidia's stock showed strong performance. However, potential export restrictions on chips to China, proposed by the Biden administration, posed a threat to this momentum. These regulations aimed to classify countries into three tiers regarding access to U.S. chips, with China facing significant limitations. Such restrictions could slow Nvidia's growth, especially considering existing prohibitions on selling its most advanced AI chips in China, which had already reduced its market share there.

Barron's

5. Nvidia's Stock-Buyback Plan is One of the Biggest of 2024. Is That a Good Thing?

In 2024, Nvidia announced a $50 billion increase in its stock buyback authorization, doubling the previous year's $25 billion program. This move, alongside a prior $15 billion buyback in the current fiscal year, underscores Nvidia's commitment to shareholder returns. Analysts are divided on the implications; some view it as a positive alignment with shareholder interests, while others question its timing given the high stock prices. The buyback is seen by some as a strategy to leverage undervalued shares and bolster earnings per share by reducing the share count.

MarketWatch

These articles collectively highlight how policy changes and strategic company decisions have influenced Nvidia's stock performance, reflecting the complex interplay between government actions and market responses.