Nvidia (NVDA) saw its stock soar 18.7% in a single day, making it the top performer among tech companies on April 9, 2025. The surge added $439.9 billion to its market cap, setting a new record for the biggest one-day gain in company value. This spike came after former President Trump announced a 90-day tariff pause, which helped lift market sentiment across the board. On top of that, Nvidia benefitted from the Trump administration’s unexpected move to lift the proposed export ban on its H20 chip, NPR reported.
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Dinner with Trump Helps Change Course for Nvidia
Nvidia’s export ban was lifted after CEO Jensen Huang had dinner with Trump at Mar-a-Lago. Reportedly, Huang discussed about expanding U.S. investments in AI data centers. This likely led to the decision to lift the ban on Nvidia’s H20 chip, which was being reviewed over security concerns.
In January, the Trump administration was weighing new limits on Nvidia’s H20 chip sales to China. These chips are vital for AI applications and have been modified to comply with U.S. export restrictions.
Now, reportedly with the ban removed, Nvidia can continue exporting the chips to China, where demand for AI is booming.
AI Demand Drives Nvidia’s Success
Nvidia’s dominance in the AI market continues to grow stronger than ever. The H20 chip remains in high demand as AI technology continues to grow globally.
Notably, Chinese companies like ByteDance, Alibaba (BABA), and Tencent have placed orders worth over $16 billion for Nvidia’s H20 chips in early 2025, driven by the surge in demand for AI services. With the ban lifted, Nvidia could continue supplying its chips to one of its biggest markets.
By sidestepping the export ban, Nvidia not only locks its position in China but also cements its role as a key player in the AI industry. As AI adoption grows, the company is ready to ride the wave and stay ahead in this tech revolution.
Is NVDA a Good Buy?
Overall, Wall Street remains bullish with a Strong Buy consensus rating on NVDA, based on 37 Buys and three Holds. The average NVDA price target of $174.06 implies 52% upside after the stock took a beating this week.
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