Giant AI chipmaker Nvidia, has seen it market capitalization surged past the $3 trillion mark once again, fueled by a powerful rally in Big Tech and a confluence of positive global developments.
The stock jumped to $129.93, rising 5.6% on Tuesday alone and briefly surpassing Apple in market value. The rally continued on Wednesday, positioning Nvidia among the most valuable and actively traded companies in the world.
The renewed momentum comes on the back of a 90-day suspension of U.S.–China tariffs, bullish investor sentiment around artificial intelligence, and a major international deal with Saudi Arabia. Analysts are calling Nvidia the “clear winner” from the easing of trade tensions, with its dominance in the AI semiconductor space growing ever stronger.
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The stock’s surge has made the company one of the top performers on both the S&P 500 and Nasdaq 100 indexes.
Following the recent increase in Nvidia’s market cap, CEO Jensen Huang was handsomely rewarded with his pay package rising by 46% to nearly $50 million reflecting investor confidence in his leadership and the company’s strategic direction. The broader semiconductor sector got a boost from a 90-day agreement between Washington and Beijing to pause tariff escalation.
Recall that Nvidia market cap first crossed the $3 trillion valuation price in June 2024, which saw it surpass Apple to become America’s second most valuable company. The company’s surge in recent years has been powered by the tech industry’s need for its chip which are use to develop and deploy big AI model.
The company’s recent market cap, has soothed fears of prolonged supply chain disruptions and rekindled optimism about global chip demand benefits that Nvidia, with its global customer base, is well-positioned to capture.
Adding to the optimism is Nvidia’s deepening partnership with Saudi Arabia’s sovereign wealth fund-owned AI startup Humain. The company recently announced the sale of advanced semiconductors to the kingdom, which is accelerating its AI initiatives through the state-backed Humain project.
The partnership was announced on Tuesday as part of the kingdom’s plans to develop artificial intelligence and strengthen cloud computing infrastructure with the help of foreign investment. One of Humain’s key moves is a strategic partnership with U.S. tech giant Nvidia to enhance the kingdom’s AI capabilities, particularly in GPU cloud computing.
The collaboration reflects Saudi Arabia’s broader economic diversification strategy focused on high-tech innovation, and Nvidia is becoming a critical partner in building the nation’s AI infrastructure.
Investors are also bullish ahead of Nvidia’s upcoming earnings report, anticipating continued growth driven by its data center and AI businesses. The company dominates the AI chip landscape, particularly in GPUs used for training large language models like ChatGPT and Claude.
Estimates suggest Nvidia controls over 80% of the AI data center chip market, reinforcing its position as a cornerstone of the global AI revolution. While several American firms are attempting to challenge Nvidia’s dominance, China’s Huawei is emerging as the most formidable competitor.
Nvidia CEO Jensen Huang has described Huawei as China’s “single most formidable” tech company. Reports indicate Huawei is rapidly closing the gap in AI chip capabilities. Sanctions by both the Trump and Biden administrations have restricted shipments of even lower-powered GPUs to China, inadvertently accelerating Huawei’s push to build domestic alternatives.
Analysts believe new restrictions being floated by the Trump camp are unlikely to significantly slow China’s AI ambitions. This intensifying competition could eventually reshape the global semiconductor landscape but for now, Nvidia remains at the summit, unrivaled in scale and influence.