By Brian Swint

Shares of Nvidia, the world's largest semiconductor maker by market value, were extending gains in early trading after a big jump on Tuesday. The biggest news affecting shares today is President Donald Trump's decision to end the so-called artificial intelligence diffusion rule that restricts exports of advanced chips. It also took aim at Chinese company Huawei, saying that buying its chips violates U.S. rules.

Nvidia's new partnership with Saudi Arabia state-backed AI firm Humain to build a huge artificial intelligence data center, announced yesterday, is giving shares an extra boost. Trump is also visiting the Middle East, adding heft to the deal amid a tumultuous year for the market on concerns that tariffs and export restrictions for chips in particular will hurt earnings.

Nvidia's market capitalization climbed back above $3 trillion this week and it briefly topped iPhone maker Apple in market value on Tuesday. By the end of the trading day, though, Nvidia was worth $3.17 trillion compared to Apple's $3.18 trillion.

Nvidia was rising 1% in premarket trading to $132.70, while Apple was down 0.4. That suggests Nvidia will soon overtake Apple again. Nvidia gained 5.6% Tuesday, compared with a 1.6% advance for the Nasdaq Composite.

Other chip shares were also advancing. Marvell Technology added 1.3%, Advanced Micro Devices rose 1.8%, and Arm Holdings was up 1.4%.

Write to Brian Swint at brian.swint@barrons.com

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May 14, 2025 05:44 ET (09:44 GMT)

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