Nvidia’s stock surged by $160 billion in market cap to nearly $3.5 trillion, driven by strong quarterly earnings and a positive court ruling on tariffs, despite trade restrictions affecting its Chinese sales. This boost contributed to a broader market rally, with the S&P 500 and NASDAQ reaching multi-month highs, and CEO Jensen Huang’s wealth increasing by $6.2 billion.
Nvidia’s stock experienced a significant surge, increasing by $160 billion in market capitalization and reaching nearly $3.5 trillion, making it the world’s most valuable company. The boost was driven by the company’s impressive quarterly earnings report, which resonated positively with investors. Nvidia’s stock price rose 5% to over $141 per share, hitting its highest level since February 18th. This market rally not only elevated Nvidia’s status but also contributed to a broader uplift in the US stock market.
The company’s strong financial performance came despite facing challenges related to US-China trade restrictions. Nvidia disclosed that it took a $4.5 billion charge last quarter and anticipates an additional $8 billion loss this quarter due to restrictions on selling its H20 chip in China. Nonetheless, the company’s results exceeded expectations, demonstrating resilience amid geopolitical hurdles. Analysts highlighted that Nvidia’s ability to deliver solid results despite these obstacles was noteworthy.
A key factor in the positive market reaction was a recent court ruling that challenged President Donald Trump’s tariffs. The Court of International Trade determined that Trump’s aggressive tariffs overstepped legal authority, leading to a potential rollback of some import fees. This decision was seen as a win for companies like Nvidia, which are affected by tariffs, and contributed to the overall market rally. The reduction in tariffs was expected to ease costs for importers and benefit the broader economy.
The broader stock market also responded favorably to these developments. The S&P 500 rose approximately 0.5%, and the NASDAQ surged nearly 1%, reaching its highest point in over three months. The positive sentiment was fueled by the combination of Nvidia’s earnings success and the court ruling, which signaled a potential easing of trade tensions and tariffs. This environment created a more optimistic outlook for technology stocks and the market as a whole.
Nvidia’s CEO Jensen Huang saw a substantial increase in his wealth, adding $6.2 billion to his fortune. This boost made him the 10th richest person in the world, according to Forbes. The overall market rally and Nvidia’s stellar performance underscored the company’s pivotal role in the AI and tech sectors. For more detailed insights, viewers are encouraged to read the full article linked in the original source.