Nvidia stock was rising early on Monday as the market weighed a temporary exemption for semiconductors from tariffs against the threat of future levies on the sector.

Nvidia shares were up 2.9% at $110.71 in after-hours trading. The stock rose 3.1% in Friday's session.

Nvidia continues to be driven by wider market sentiment around tariffs and uncertainty over how they will be applied to the semiconductor sector.

On Friday the Customs and Border Protection released a notice saying that smartphones, laptops, integrated circuits, transistors, semiconductor storage devices and machines for making semiconductors would be exempt from some tariffs. However, Commerce Secretary Howard Lutnick clarified Sunday that those goods would face separate tariffs in the coming months.

"We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations," President Donald Trump posted on the Truth Social platform on Sunday.

Nvidia CEO Jensen Huang has suggested his company could be insulated from tariffs and even a recession. At the company's annual GTC conference, Huang told financial analysts that he wasn't expecting a significant hit on the company's outlook from tariffs and that Nvidia would bring more manufacturing stateside over time.

Among other chip makers, Advanced Micro Devices was up 2.7% in premarket trading and Broadcom was up 1.9%.