NVIDIA stock (NVDA) rallied nearly 2.6% on Monday, rebounding strongly from the previous close amid Israel-Iran tensions.
The stock was trading at $145.72 at the time of publishing, with a moderate trading volume.
NVIDIA recently announced its first quarter results and reported $44.1 billion in revenue for the period ending April 2025, a 12% jump from the previous quarter and a massive 69% increase from a year earlier.
The chipmaker continues to trade near its recent highs, riding on the backs of momentum in artificial intelligence and the recent buzz around ‘Sovereign AI.’
NVIDIA’s expansion plans
The surge in the NVIDIA stock comes as CEO Jensen Huang undertook a high-profile trip to Europe, where he addressed buzzing tech halls and AI enthusiasts who lined up to listen to the tech giant.
Huang shared the stage with UK Prime Minister Keir Starmer and French President Emmanuel Macron, which indicated the authoritative support NVIDIA has in European markets.
NVIDIA is actively seeking to craft its Europe strategy around its strict data protection and privacy laws, and that is reflected in the messaging of the company.
CEO Jensen Huang’s main pitch revolved around building their own AI infrastructure, the “sovereign AI,” which relates to the idea that nations must control their data.
This comes as European nations have openly shared their concerns regarding how current AI models are using data.
NVIDIA is looking to fill this gap in Europe by promising enhanced transparency and complete compliance with its data protection laws.
Huang framed NVIDIA not just as a chipmaker but as the backbone of the next generation of digital infrastructure, likening AI to essential utilities like electricity.
The company is also looking at a high-profile partnership with French startup Mistral to develop a European AI cloud powered by NVIDIA GPUs.
US chip restrictions
NVIDIA faced a major challenge in April this year when the US administration asked the chipmaker to obtain a special license to export its H20 AI chips to China.
The step came as the Donald Trump administration ramped up efforts to prevent China from accessing American chip technology, especially for AI and military purposes.
The restrictions weighed heavily on the pocket of NVIDIA as the company lost $2.5 billion in potential revenue.
Moreover, the company had to take a $4.5 billion charge for unsold inventory and purchase commitments tied to these chips, since demand from China suddenly dried up.
CEO Jensen Huang decided to make a strategic shift amid uncertainty and decided that the company would exclude China from its official revenue and profit forecasts.
US markets rebound
Wall Street opened on an optimistic note on Monday after witnessing a sharp sell-off last week. The investors look hopeful about the resolution of the recent Israel-Iran conflict.
The Dow Jones Industrial Average rose by 248 points (0.6%), the S&P 500 gained 0.7%, and the tech-heavy Nasdaq Composite led the way, climbing nearly 1%.
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