Nvidia Leads AI Stock Rebound After Shaking Off Trump Tariff Fears

Nvidia (NVDA) stock rebounded from an early-morning slump on Tuesday as AI stocks shook off the tariff shock that sent the broader market reeling.

Nvidia shares rose 1.7% Tuesday after tumbling more than 8% yesterday and trading as much as 4% lower in premarket trading today. AI server maker Super Micro Computer (SMCI), which tumbled 13% yesterday, also rebounded, climbing 8.5%. The two led a broad AI rally, with Wall Street darling Palantir (PLTR) and Vistra (VST) also advancing.

AI stocks have been on a wild ride for the past month. Concerns about stubborn inflation and the consequences of President Donald Trump’s tariffs have cast a fog over the market’s outlook for both the U.S. economy and interest rates. Headlines out of Washington have tempered the risk appetite that last year powered triple-digit gains for AI beneficiaries like Palantir, Vistra, and Applovin (APP).

Nvidia’s stock has also been pressured over the last month by Chinese start-up DeepSeek’s claim it developed a top-tier reasoning model without Nvidia’s most powerful chips. That revelation initially sparked concern that U.S. cloud providers could rein in their spending on chips and servers to focus on creating more efficient AI, but big tech companies have since stood by their plans to invest hundreds of billions in AI infrastructure. 

DeepSeek has led the U.S. and other countries to investigate whether Chinese developers are acquiring Nvidia’s chips illegally. Singapore is reportedly investigating whether servers containing advanced Nvidia chips were illegally routed to DeepSeek after being sold to local firms. The investigations could compel the Trump Administration to tighten export restrictions even further, weighing on Nvidia’s international sales. 

Despite all the concerns, analysts are still mostly bullish on Nvidia’s stock. Wedbush analysts have even argued that Nvidia will benefit from DeepSeek; they argue that demand for AI and Nvidia’s chips will increase as models become more efficient and less expensive.