Chipmaker Nvidia is riding quite the high. Nvidia shares rose more than 4% on Wednesday and closed at a record for the first time since January, as investors gain confidence that the company’s leadership in artificial intelligence won’t be dampened by Chinese export controls.
Nvidia has been capitalising on President Donald Trump’s support for AI. In 2025, Nvidia has continued its rapid ascent in the global technology sector, closely intertwined with major political developments in the United States. Early in the year, the Trump administration imposed export restrictions on Nvidia’s H20 AI chips to China, citing national security concerns. This move threatened a key revenue stream, with estimates suggesting losses of up to $5.5 billion.
“The $50 billion China market is effectively closed to U.S. industry,” Nvidia CEO Jensen Huang said last month.
In response, Huang met with Trump at Mar-a-Lago, where a deal was reportedly struck to ease certain restrictions. In exchange, Nvidia committed to expanding its domestic investments in artificial intelligence infrastructure—an initiative aligned with Trump’s renewed “America First” manufacturing policy.
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Following that agreement, Nvidia announced a long-term plan to invest heavily in AI infrastructure across the United States. Though not all financial details were public, the company pledged up to $500 billion over four years toward building AI data centers, supercomputing facilities, and research hubs. This domestic expansion not only reinforces Nvidia’s leadership in the semiconductor space but also supports Trump’s broader push to re-industrialize America and reduce reliance on overseas chip manufacturing.
Meanwhile, the administration’s policy shift helped Nvidia grow its presence in Middle Eastern markets, especially after loosening Biden-era export limitations that previously restricted advanced chip sales to the Gulf region.
In its earnings report in May, Nvidia reported a 69% increase in year-over-year revenue, powered by a 73% surge in its data center business. For the full fiscal year, analysts are expecting 53% revenue growth to almost $200 billion, according to LSEG.
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To further accelerate U.S. AI competitiveness, Trump signed Executive Order 14179 in January 2025, reversing previous trade restrictions and promoting deregulation in the AI sector. This policy pivot, coupled with Nvidia’s technological dominance, triggered a significant recovery in the company’s stock price—from a low near $94 in April to a record $154.31 in June. With its market capitalization approaching $3.8 trillion, Nvidia briefly surpassed both Microsoft and Apple, becoming the most valuable company in the world. Backed by strong demand and government alignment, Nvidia is positioned as a cornerstone of America’s AI future.
Nvidia is now worth $3.77 trillion, making it the largest company in the world by market cap, slightly beating out Microsoft, one of its main customers. Apple is third at about $3 trillion.
Nvidia’s soaring stock in 2025 signifies its solidified position as a leader in AI and semiconductor technology. This success boosts investor confidence, enabling the company to secure more funding for research, innovation, and global expansion. With a market value near $3.8 trillion, Nvidia gains greater influence over industry standards and policymaking, strengthening its competitive edge. The high valuation also attracts top talent and strategic partnerships, fueling continued growth. Ultimately, this financial momentum empowers Nvidia to drive advancements in AI, data centers, and emerging technologies, securing its role as a key player shaping the future of the tech industry.