Nvidia stock fell early Tuesday but remained near its all-time high as stock market trading began for the third quarter.
Likely pressuring the stock were moves by two Chinese artificial intelligence startups to go public. One of them, Moore Threads, was founded by Zhang Jianzhong, a former Nvidia executive. Combined, the two companies plan to raise about $1.7 billion in their initial public offerings, Reuters reported.
Nvidia Chief Executive Jensen Huang said in May that a U.S. ban on selling its H20 AI chip in China could cost $15 billion in sales. Is Nvidia a buy or sell now?
Meanwhile, investors are hoping for more U.S. trade deals ahead of the tariff pause deadline on July 9.
Shares have been rebounding amid trade optimism even as Huang sold 200,000 more shares of Nvidia stock between June 24 and June 26, according to a Securities and Exchange Commission filing.
Earlier, Barron's reported that Huang was set to sell more than $800 million in Nvidia stock through planned transactions.
Focus on China H20 chips
Nvidia is working on a new China chip, according to reports.
Huang told CNBC in early May that being blocked from the Chinese market would be a "tremendous loss" for Nvidia. He expects China's burgeoning AI market to reach $50 billion in two to three years.
Nvidia had written off $5.5 billion after the Trump administration said the company would need a license to sell its H20 chips abroad. Analysts believe the company may not be granted the license.
Huang said Nvidia's system would be open to other AI-chip makers to integrate their custom chips around its standard rack design for data centers.
June Rally
Shares of Nvidia rallied 17% in June, guiding the chipmaker to outpace Microsoft in market capitalization. The valuation race between the two tech titans has been close ever since Nvidia announced its first-quarter results on May 28.
Nvidia shares soared 10% last week, aided by new initiatives, including an AI innovation event with partner CoreWeave . The weekly rally in Nvidia shares also followed President Donald Trump's call for a "ceasefire" in the conflict between Israel and Iran, raising expectations for de-escalating tensions in the Middle East. Meanwhile, Trump said that a trade deal with China had been completed.
Nvidia is a new entry on the IBD Leaderboard.
Nvidia Stock: Sovereign AI Push
The company made several moves in June to expand artificial intelligence technology centers in Europe, amid its developers conference in the region. Nvidia said it's partnering with Germany's Deutsche Telekom to create the first industrial AI cloud for European manufacturers.
Nvidia also announced deals with companies in the United Kingdom as the U.K. government seeks to bolster the country's AI capabilities.
The artificial intelligence chip titan has also been stepping up its partnership with the Saudi Arabian government to build AI infrastructure since May. The company has partnered with Humain, a subsidiary of Saudi Arabia's Public Investment Fund focused on AI.
Shares of Nvidia recently rose after Trump said on Truth Social that a trade deal between the U.S. and China was "done," subject to his final approval alongside that of Chinese President Xi Jinping. But the stock later pulled back amid an escalation in the conflict between Israel and Iran.
Meanwhile, analysts at Jefferies recently noted that capital expenditures by Chinese AI players Baidu, Alibaba, and Tencent were up 100% from the prior year.
Nvidia in late May said first-quarter earnings per share of 81 cents rose 33% from the same quarter a year ago. Sales grew 69% to $44.1 billion. Analysts polled by FactSet had projected 88 cents in earnings per share on sales of $43.2 billion.
Big Tech Confirms Huge Spending Plans
Nvidia stock had risen above the 50-day moving average after Amazon released earnings results on May 1. Amazon's run-up in capital expenditures in the first quarter was largely due to demand for its artificial intelligence services.
Amazon's capex for the first quarter jumped to $24.3 billion from $13.9 billion in the same quarter a year ago.
Magnificent Seven leaders Meta Platforms and Microsoft recently reported quarterly results that beat estimates. Meta increased its capital expenditure for 2025 to support its "artificial intelligence efforts."
Alphabet, an Nvidia partner, crushed estimates and maintained its $75 billion capital spending plan.
But Nvidia stock in late April was given a sell rating at Seaport Research as it initiated coverage with a $100 price target. Analysts see "significant complexity required for deployments of Nvidia systems in comparison to traditional data centers." They also see the artificial intelligence spending boom slowing in 2026.
Nvidia stock had declined following news that China's Huawei Technologies is testing a new artificial intelligence chip that could have higher capabilities than Nvidia's H100.
Nvidia Stock: Volatility Amid Tariff Risk
A flurry of tariff news spurred volatility in Nvidia stock in April. Nvidia stock surged amid a historic rally when Trump announced a 90-day tariff pause for most countries. But Trump followed that up by increasing tariffs on China to 125% after that nation imposed tariffs of 84%.
Trump exempted semiconductor products from those steep tariffs. On Truth Social, however, he mentioned that nobody was getting "off the hook." U.S. Commerce Secretary Howard Lutnick said sector tariffs on semiconductor imports would land in about a month.
Meanwhile, Nvidia had announced plans to make AI supercomputers entirely in the U.S. The company's blog says it has "commissioned more than a million square feet of manufacturing space to build and test Nvidia Blackwell chips in Arizona and AI supercomputers in Texas." Mass production is expected to ramp up in 12 to 15 months.
The Trump administration added several Chinese companies to an export blacklist on national security concerns. U.S. companies selling chips to those firms will need to get government approval first.
Won't Hurt 'In Short Term'
At the GTC conference in March, Huang noted that tariffs would not hurt the company "in the short term" as it seeks to move more chip production to the U.S.
In terms of its 12-month price performance, Nvidia has outperformed 90% of all other stocks in Investor's Business Daily's database.
Funds own 40% of Nvidia's outstanding shares, according to IBD MarketSurge. Going by its Accumulation/Distribution Rating of B-, it appears that funds are buying the stock. The rating measures price and volume action over the last 13 weeks.
Big Techs Confirm Huge Spending Plans
Earlier this year, Amazon indicated it planned to increase its spending by 27% or $105 billion – mostly on AI data centers. But Alphabet topped that as the Google parent plans to increase its spending by 57% for a total of $75 billion.
"Most AI (computing) has been driven by Nvidia chips, and we obviously have a deep partnership with Nvidia and will for as long as we can see into the future," Amazon CEO Andy Jassy said on its fourth-quarter earnings call in February.
However, Microsoft's spending on AI data centers is set to slow next year. Microsoft announced in December that the company faced no chip supply constraints.
View More Trump Tariffs News And Analysis
Nvidia Stock: Market Cap
Nvidia replaced Intel in the Dow Jones Industrial Average in November, becoming the fourth Magnificent Seven stock to join the list of blue chips. The others are Apple, Amazon.com and Microsoft.
The stock has also moved ahead of tech titan Apple in terms of market cap.
The AI chip behemoth has a top-level Earnings Per Share Rating of 99. Further, the stock's all-around strength, or Composite Rating, sits at 97.
IPhone Moment Of AI
Nvidia's graphics processing units help accelerate computing in data centers and AI applications.
The company pioneered graphics processors used in such industries as health care, game machines, automobiles and robotics.
In March 2023, generative AI took a leap forward with OpenAI's ChatGPT. According to CEO Huang, Nvidia's AI-capable chips paved the way for the "iPhone moment of AI."
That helped Nvidia turn the tide on its results. It had reported three quarters of declining year-over-year sales. It also showed four quarters of tapering earnings in late 2022 and early 2023.
But then the company achieved record top- and bottom-line growth in the seven most recent quarters.
Is Nvidia Stock A Buy?
Looking at chart signals and technical measures can help investors assess whether Nvidia stock is a buy or sell now.
Nvidia remained above a consolidation's entry at 153.13 and in a buy zone that goes up to 160.79 on Tuesday. That makes Nvidia a buy now.
