Nvidia’s Fightback Continues as Stock Adds to 26% Gains Pre-Market

In a significant policy shift, the United States has exempted key industries including computers, smartphones, semiconductors, and other electronics from reciprocal tariffs on imports from China.

This decision, announced late Friday, is anticipated to positively affect semiconductor companies, with Nvidia's stock (NASDAQ: NVDA) seeing a jump during this morning's pre-market. Gains of 3.1% before the open, continue a reversal that had seen NVDA add more than 26% last week, as various tariff announcements were made.

The U.S. tariffs previously imposed on certain product categories reached up to 145%, adversely impacting American companies dependent on these imports. Consumer electronics constituted approximately 22% of China's total exports to the United States.

Nvidia, alongside Apple, was among the worst-performing stocks in the Dow Jones Industrial Average year-to-date after a start to forget. Nvidia remains 19.80% down on the year even when accounting for the recent rally, with Apple faring marginally better, down 18.7% YTD.

This policy shift could significantly boost Nvidia and other affected companies, offering a reprieve from earlier losses experienced through tariff impositions. This exemption represents a strategic move likely to propel stock prices and invigorate market sentiments starting Monday.