It definitely is a crazy year in technology with a 90-day tariff truce between China and the U.S being the sensational thing on the go. One moment Nvidia is lost in a market correction and the next, it’s showing off a $3 trillion market cap like it just went to the AI gym. While the majority of stocks are still recovering from April’s plunge, Nvidia is already running laps around the Nasdaq and racking up chips (and press) in the process.

The Nasdaq Composite has rebounded impressively, almost wiping out its previous 2025 losses after the 90-day U.S-China tariff ceasefire. The pause cut duties by a total of 115 percentage points, shocking tech stocks into rally mode, but one name is running far ahead of the pack.

Nvidia’s Scenario

Wedbush analyst Dan Ives has no hesitation identifying the biggest winner of this unexpected tariff truce.

“It would have to be Nvidia,”

he said, moments before the chipmaker’s market cap crossed the $3 trillion threshold for the second time in its history. Ives cited the sweet storm brewing in Nvidia’s direction, a widespread tech rebound and a global AI investing cycle unbroken.

“This is a dream scenario,”

Ives said, highlighting Nvidia’s strong market position in the semiconductor arena. Nvidia’s stock rose over 5% on consecutive trading days after the tariff delay was announced, reflecting a surge of investor optimism that the AI front-runner’s rally has a long way to go.

Focus is on Jensen Huang

Ives said,

“I think the stock makes … new all-time highs because there’s only one chip in the world fueling the AI revolution, and that’s led by the godfather of AI, Jensen, and Nvidia.”

Nvidia’s head Jensen Huang, who is referred to as the “godfather of AI,” is currently in Saudi Arabia, attending a high-level deal-making summit spearheaded by President Trump. The trip comes as a part of an emerging strategic partnership between U.S technology companies and Gulf states keen to invest in artificial intelligence hardware.

In a notable breakthrough, Nvidia said it will deliver 18,000 of its powerful chips to a Saudi AI firm funded by the kingdom’s sovereign wealth fund. This comes after the U.S provided  Saudi Arabia with wider access to advanced AI chips, a development that increases Nvidia’s foreign sales, but also provokes geopolitical raised eyebrows.

Geopolitical Complications

The move to approve high-tech exports to the Gulf is not without controversy. There are concerns that those chips might indirectly find their way to China, avoiding export controls. Brian McCarthy, MacroLens chief strategist, says enforcing chip curbs is a challenging, if not impossible, endeavor. McCarthy said,

“It’s just very, very hard to put a net around this stuff. The Chinese are very diligent. They have a very good network of ways to move products underground … for all kinds of products.”

However, the national security discussion has not dissuaded investors. In fact, the chance that Nvidia chips continue to find their way to Chinese companies that are hungry for AI, even indirectly, is being viewed as a positive risk by some investors.

In Ives’ view, what is currently taking place is merely an indication of the larger picture. Ives said,

“It shows it’s not just about China. This just shows what I believe is going to be happening over the coming years — the trillions being spent on AI.”

For Nvidia, its AI gold rush is in the early innings, and the firm is still the unchallenged vendor to the whole industry. While wider trade dynamics are in flux and geopolitical risks continue to lurk, Nvidia’s present position indicates that it’s playing offense while everyone else is yet to learn the rules of the game.