By Adam Clark

Nvidia stock was edging down in Monday's premarket. Geopolitical and trade tensions look to be holding back the chip maker from hitting fresh record highs.

Nvidia shares were down 0.5% at $143.13 in premarket trading. Futures tied to the benchmark S&P 500 index were rising 0.2%.

Nvidia stock has surged from lows of less than $100 in late April but remains short of its record high of $149.43 reached in January. Investors are looking for further evidence to justify pushing the market value above its current $3.51 trillion.

There is plenty of evidence big technology companies will continue to pour money into artificial intelligence. Facebook-parent Meta Platforms is offering $100 million pay packages to recruit talent to help launch its next flagship AI model, according to The Wall Street Journal. That model will very likely be trained on Nvidia hardware.

However, investors could be wary of pushing highly valued technology stocks such as Nvidia further until worries about conflict in the Middle East and the outcome of tariff negotiations become clearer.

So far Nvidia has avoided being subject to any tariffs, after the White House exempted semiconductors, semiconductor manufacturing equipment, PCs, and smartphones from its planned levies.

However, potential tariffs on chips are under investigation by the U.S. Department of Commerce under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose duties on imports that are considered a national security threat.

Among other chip makers, Advanced Micro Devices was rising 1.1% and Broadcom was down 0.3% in premarket trading.

Write to Adam Clark at adam.clark@barrons.com

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June 23, 2025 09:29 ET (13:29 GMT)

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