By Brian Swint

Nvidia, the biggest U.S. chip maker by market value, was rising sharply in premarket trading Monday after the U.S. and China agreed to reduce most tariffs while they continue trade talks.

Shares jumped 4.9% in premarket trading to $122.39. Other semiconductor firms were also advancing. Intel climbed 4% and Marvell Technology added 8%. Super Micro Computer, which makes servers that specialize in cloud computing, jumped 6.5%.

Semiconductors, and Nvidia in particular, find themselves at the heart of the tensions between the world's two biggest economies. The race to harness artificial intelligence, which requires the most advanced hardware, is hotter than ever, while the supply chain for processors has deep roots in Taiwan, another potential source of conflict.

Treasury Secretary Scott Bessent said early Monday that most tariffs would be scaled back to about 10% for 90 days while the U.S. and China continue trade talks.

The burden of President Donald Trump's tariffs have weighed on Nvidia this yea -- the company is also banned from exporting its most advanced chips to China. Coming into the session, shares are down 13% since Jan. 1, though they're still 29% higher than 12 months ago.

The company has raised prices of its graphic processing units by as much as 25% to recoup some of the cost of the tariffs, according to a report in Taiwan's DigiTimes on Monday. Nvidia didn't immediately respond to a request for comment.

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

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May 12, 2025 06:14 ET (10:14 GMT)

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