Nvidia stock rally extends in premarket on Trump–Xi talks over AI chip exports

Investing.com -- Nvidia shares extended their record-setting rally after U.S. President Donald Trump said he plans to discuss the company’s Blackwell artificial intelligence processors with Chinese leader Xi Jinping, fueling speculation that Washington could ease restrictions on chip exports to China.

As of 09:10 GMT, Nvidia shares traded at $206.13, up 2.6% in pre-market U.S. trade. A share price move above $206 a share would see Nvidia become the first $5 trillion company.

“We’ll be speaking about Blackwells,” Trump told reporters Wednesday, ahead of his meeting with Xi later this week. He described the chip as “super duper” and noted that Nvidia Chief Executive Jensen Huang recently brought a version of the accelerator to the Oval Office.

Trump had previously signaled that he might consider allowing Nvidia to export a downgraded version of its latest AI processor to China — a move that would mark a major policy shift and potential breakthrough in U.S.-China tech relations.

The remarks sparked investor hopes that chip trade could be part of a broader deal aimed at easing tensions between the world’s two largest economies. A relaxation of export controls would represent a significant win for Nvidia, the world’s most valuable company, and a notable concession by Washington after years of efforts to curb China’s access to advanced AI technology.

Investors currently have "zero China expectations," while "any resolution to trade issues" is incremental, according to BofA analyst Vivek Arya.

"Solid visibility (CY25/26 backed by $0.5Tn+ in orders at conservative $25bn/GW vs. potential for $30bn+ content)," is what is driving Nvidia shares higher, Arya added. The analyst lifted his price target on the AI winner’s stock to $275 per share.

The comments came as Nvidia’s stock continues to climb following a string of announcements at its annual GTC conference. Shares jumped another 5% on Tuesday after the company revealed new partnerships across industries, including a collaboration with the U.S. Department of Energy to build seven new supercomputers — one of which will use 10,000 Blackwell GPUs.

Most notably, Huang projected Nvidia will generate $500 billion in GPU sales through 2026, underscoring the strength of AI-driven demand. The company has already reported more than $100 billion in revenue in the first half of this year — a figure that has solidified its position at the center of the global AI boom.

Nvidia also said it is working with Uber to develop self-driving vehicles and with Eli Lilly to accelerate drug discovery using 1,000 of its GPUs. Other tie-ups include efforts with Nokia to advance 6G technology and collaborations with Palantir, Oracle, Cisco, and T-Mobile on AI and telecommunications infrastructure.

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The chipmaker’s technology is also being adopted by companies such as Amazon, Foxconn, Caterpillar, and Belden to power industrial robotics systems. Nvidia further unveiled a new open systems architecture, NVQLink, designed to support the next generation of quantum supercomputers in partnership with Rigetti and IonQ.

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