Nvidia is now one of just three stocks from the Magnificent Seven still in the green this year, joining Meta and Microsoft, according to data from CNBC.
This elite group, made up of Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, had pushed the S&P 500 up by 23.31% in 2024. But after a brutal stretch defined by new tariffs from US President Donald Trump, most of them have been dragged down.
While Apple and Nvidia were hit hardest because they depend on exports and global supply chains, companies like Meta and Microsoft had more protection. They make most of their money from services like ads and software — things that don’t get trapped behind import duties.Â
Meta and Microsoft stocks have gone up this year. Now, the NVDA stock is finally catching up, despite the fact that it sells physical products that can’t slip around trade laws.
Nvidia lands AI deal in Saudi Arabia as Trump tightens chip rules on China
On Tuesday, Nvidia signed a deal with Saudi Arabia to help build out its artificial intelligence sector. CEO Jensen Huang traveled to the kingdom in person to announce the Blackwell deal. But while Huang was in the Gulf, the Trump administration rolled out a fresh wave of chip restrictions on China.
The Commerce Department warned that US-made AI chips are being diverted to Chinese models, and said new controls are being put in place to stop that. They also called out certain supply chain tactics used to bypass the rules and said they would start focusing on smuggling risks more closely.
This came right after the US and China paused most of their mutual tariffs. And even though the White House scrapped the controversial AI Diffusion Rule, these new restrictions add a whole other layer that companies now have to deal with.
Back on the markets, US indexes were mixed on Wednesday. The S&P 500 added 0.1%, the Nasdaq Composite went up 0.72%, and the Dow Jones fell 0.21%. AMD jumped 4.7% after announcing a $6 billion buyback, which helped lift the Nasdaq, along with Nvidia’s own gains.
In Europe, the Stoxx 600 fell 0.24%, breaking its four-day win streak. Burberry shares rose 17% after the company announced cost cuts and a new turnaround plan.
