The group of tech stocks known as the Magnificent Seven added more than $830 billion in market capitalization on Monday after the U.S. and China agreed to roll back tariffs on each other for 90 days - keeping fears of a recession at bay for now, according to some analysts.

Under the trade deal, the U.S. will cut tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on the U.S. from 125% to 10%, for a 90-day period.

"This is clearly just the start of ... broader and more comprehensive negotiations, and we would expect both these tariff numbers to move down markedly over the coming months as deal talks progress," Wedbush analysts said in a note on Monday.

Under these expectations, Wedbush analysts said they "believe new highs for the market and tech stocks are now on the table" for the rest of the year, as investors continue to follow trade discussions in the coming months. And the "massive tariff reductions at this time likely take a recession off the table for now in our view," they added.

Amazon.com Inc.'s stock $(AMZN)$ saw the biggest gain, up 8.1%, while shares of Meta Platforms Inc. $(META)$ rose 7.9% and Tesla Inc. $(TSLA)$ advanced 6.78%. Apple Inc.'s stock $(AAPL)$ gained 6.3%, Nvidia Corp.'s $(NVDA)$ rose 5.4%, Alphabet Inc.'s $(GOOGL)$ advanced 3.7% and Microsoft Corp.'s $(MSFT)$ edged up 2.4%. Overall, the Magnificent Seven stocks added $830.9 billion to their collective market cap.

While Amazon's stock was the biggest gainer, Apple was the biggest contributor to the market-cap gains for the group. Apple's market cap was up more than $183 billion on Monday, versus $165 billion for Amazon.

The cuts are also good news for tech companies concerned about supply-chain disruptions, Wedbush said, although other restrictions - such as U.S. curbs on sales of Nvidia's H20 chips in the Chinese market - will need to be part of later discussions, the analysts said.

Melius Research analysts reiterated their buy rating on Nvidia's stock on Monday, saying that increased clarity on tariffs and China makes the chip maker "much more investable."

However, with President Donald Trump expected to make a decision soon about semiconductor imports under Section 232 of the Trade Expansion Act, Melius analysts said that "the entire tech supply chain is scrambling to meet near-term demand for certain items that seem to be surging temporarily." The analysts noted "an unnatural surge" in sales of personal computers and smartphone components.

Meanwhile, Melius said Nvidia will likely increase prices for its chips due to rising costs at Taiwan Semiconductor Manufacturing Company Ltd. on a strengthening Taiwanese dollar. Using TSMC's chip-fabrication facilities in Arizona could drive up costs by 40%, Melius said, citing industry sources. With chips and infrastructure expected to cost more, Melius analysts said they "think Nvidia will likely pass the impact on to customers, but it could also cap margin upside."

And Trump's plans to repeal the Biden administration's artificial-intelligence diffusion rules also show "regulations may actually be going in the right direction for Nvidia," Melius analysts said.

"Perhaps the Trump administration not only realized that this overreach would push allies toward China but also realized that the rule wouldn't allow the president to sign huge investment deals with rich allies in the Middle East like the UAE, Saudi Arabia and Qatar," Melius said, adding that AI investments in the U.S. would drive demand for even more of Nvidia's chips.