Shares of Nvidia rose as much as 3.1% to $178.08 on Monday, tracking a broader market rally after signs of easing geopolitical tensions in the Middle East.
US equities moved sharply higher after President Donald Trump said Washington and Tehran were in talks and that strikes on Iranian energy infrastructure had been paused.
The comments fueled optimism that the conflict may be nearing a resolution.
The Dow Jones Industrial Average jumped 648 points, or 1.4%, while the S&P 500 gained 1.2%.
The Nasdaq Composite advanced 1.4%, led by strength in technology shares.
Despite Monday’s gains, Nvidia shares continue to trade within a narrow range, reflecting ongoing investor uncertainty around the broader artificial intelligence trade.
The stock has struggled to break out in recent months as markets reassess the sustainability of heavy spending on AI infrastructure and the long-term return on those investments.
Oil drop supports risk assets
The rally was accompanied by a sharp pullback in oil prices, which had surged in recent sessions amid fears of supply disruptions.
West Texas Intermediate crude fell more than 7% to around $90 per barrel, while Brent crude declined over 8% to near $102.
Lower oil prices helped ease concerns about inflation and global growth, improving sentiment toward risk assets such as equities and technology stocks.
China competition emerges as key risk
One emerging concern for Nvidia is intensifying competition in China, a key market for the company.
Chinese tech giant Huawei has launched its Atlas 350 AI accelerator, targeting inference workloads — a fast-growing segment of the AI market.
According to local media reports, Huawei claims the chip delivers nearly three times the computing power of Nvidia’s H20 processor, one of the limited products the US company is allowed to sell in China under export restrictions.
The development underscores growing competitive pressure from domestic players as geopolitical constraints limit Nvidia’s access to the Chinese market.
Focus shifts to AI infrastructure and energy
Nvidia also announced a series of partnerships aimed at supporting the next phase of AI infrastructure development.
The company is working with firms including AES Corporation, Constellation Energy, and NextEra Energy to build “AI factories” that integrate computing infrastructure with energy systems.
These facilities are designed to connect to power grids more efficiently while also functioning as flexible energy assets, reflecting the increasing importance of power availability in scaling AI workloads.
The initiative centres around Nvidia’s Vera Rubin AI architecture and aims to accelerate the deployment of high-performance computing infrastructure.
Analyst bullish on Nvidia stock
Wall Street sentiment toward Nvidia remains broadly constructive despite recent volatility.
Cantor Fitzgerald reiterated an Overweight rating and a $300 price target following the company’s GTC conference.
Analyst CJ Muse said the event highlighted the emergence of “agentic AI” and the growing importance of token generation as a revenue driver.
He noted that Nvidia’s integrated platform approach positions it strongly to benefit from the expansion of AI infrastructure, particularly in a power-constrained environment.
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