Shares of semiconductor giant Nvidia surged nearly 19% on April 9, 2025, following a significant shift in U.S. trade policy and signs of a reprieve in export restrictions related to China. The rally, part of a broader market rebound, was spurred by U.S. President Donald Trump’s announcement of a 90-day pause on reciprocal tariffs, during which a flat 10% tariff would be applied to imports. The move prompted strong investor optimism, with the S&P 500 and Nasdaq Composite climbing 9.5% and 12.2%, respectively.
The gains were led by the technology sector, which has faced headwinds in 2025 due to a slowing global economy and speculation that artificial intelligence (AI) spending may have peaked. Nvidia, a key beneficiary of the AI boom in recent years, had seen its stock price fall by nearly 15% earlier in the year amid concerns over declining demand from major data center operators and the emergence of competing low-cost AI models. The abrupt rebound in Nvidia’s share price was fueled in part by easing concerns over U.S. export controls to China.
The company has faced growing scrutiny over its H20 chip, a high-performance AI processor designed specifically to comply with U.S. restrictions while serving China’s substantial market. According to reports from the media, the administration has shelved plans to impose further limits on the H20, allowing Nvidia to continue fulfilling up to $16 billion in reported orders from major Chinese tech firms, including Alibaba, Tencent, and ByteDance. This policy shift follows increased lobbying efforts by Nvidia CEO Jensen Huang, who reportedly attended a high-profile event at Mar-a-Lago in support of pro-business policies.
Sources cited by media suggest Nvidia’s pledge to expand its U.S.-based infrastructure investments played a role in softening the administration’s stance on the H20 chip. Nvidia’s global revenue has soared alongside the AI boom. From $27 billion in 2023, the company’s annual sales jumped to over $130 billion in 2024, driven by demand for its H100, H200, and Blackwell series chips. These processors are designed to handle the demanding workloads of AI training and inference, making them essential for cloud providers and enterprises deploying large-scale AI systems.
Net income also surged, climbing from under $5 billion in 2023 to nearly $73 billion in 2024. Despite recent volatility, Nvidia’s dominant role in AI infrastructure continues to underpin investor confidence. Although geopolitical pressures remain a risk, the pause in trade restrictions and continued access to the Chinese market significantly strengthen Nvidia’s near-term outlook. Investors responded swiftly to the news, making Nvidia one of the day’s top-performing stocks across all sectors. – By MENA Newswire News Desk.