Nvidia Stock (NVDA) Eyes New Highs as U.S. Loosens Chip Export Rules

Improved risk sentiment from trade optimism and regulatory shifts supports a sharp rally in key tech names such as Nvidia, which has resumed the uptrend again. Market Overview: Split Indices, Tech Outperforms Again Despite a mixed close for U.S. equity markets, the technology sector showed renewed strength, with the Nasdaq posting notable gains even as the Dow Jones Industrial Average ended the session lower. This divergence was driven by a strong performance in semiconductor and AI-linked stocks, most notably Nvidia (NVDA) and Alphabet (GOOG). Policy Winds Shift: AI Export Rules May Be Loosened Investors welcomed news that the Trump administration plans to dismantle a key component of the Biden-era AI export policy, originally set to take effect on May 15. The prior framework had established three tiers of access for nations purchasing advanced U.S. AI chips—a move that restricted exports to China and other countries deemed sensitive. By contrast, the reversal would favor U.S. semiconductor giants like Nvidia, while curbing access to Chinese players such as Huawei. The original 2019 blacklisting of Huawei had already strained U.S.-China tech relations, and the Trump administration now appears poised to further reassert a “pro-U.S. firm” stance in global AI infrastructure. Nvidia’s Position Strengthens Amid Policy Reversal Nvidia stands to gain substantially. Earlier this year, the company suffered a $5.5 billion impairment charge related to unsold chips that couldn’t be exported to China—especially its H20 AI processors. Despite China generating $17.1 billion in revenue for Nvidia in the last fiscal year, access was severely curtailed by the Biden-led export controls. From a technical perspective, Nvidia shares have surged past the 50-week Simple Moving Average (SMA) near $115, which previously acted as resistance. This move follows a rebound off the 100-week SMA in April and signals a resumption of the long-term bullish trend. The next significant resistance lies at $140, followed by the all-time high of $153.13. Strategic Deals and Capital Flows Support Sentiment Adding to the tailwind for U.S. companies, President Trump announced a series of multibillion-dollar deals with major U.S. firms spanning technology, defense, and infrastructure. These are part of a broader $600 billion investment commitment from Saudi Arabia, aimed at strengthening U.S.-Middle East economic ties and channeling capital toward sectors with high growth potential.