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Nvidia Corporation (Nasdaq: NVDA) shares surged 3.57% during Monday’s pre-market trading session on October 13, 2025, climbing to $189.50 after closing at $183.04 the previous day. The rally came as President Donald Trump softened his stance on China tariffs, signaling a potential de-escalation in the ongoing U.S.-China trade war. This shift in tone provided a significant boost to technology stocks, particularly those in the semiconductor sector that are heavily exposed to Chinese markets and global supply chains.
 

Tariff Easing Sparks Broad-Based Rally in Tech Stocks

President Trump took to Truth Social to reassure markets, stating “Don’t worry about China, it will all be fine,” suggesting a potential de-escalation following tensions with President Xi. This marked a significant shift from the administration’s previous hardline approach, which had raised concerns about disruptions to semiconductor supply chains and restrictions on AI chip exports to China. The broader market responded positively, with Nasdaq 100 futures climbing 1.95% to 24,873.50 and S&P 500 futures rising 1.39% to 6,686.75.

The rally extended across the Magnificent Seven tech giants, with Amazon rising 2.05%, Apple gaining 1.68%, and Microsoft climbing 1.57%. However, Nvidia’s 3.57% surge stood out as one of the strongest performances, reflecting the company’s particular sensitivity to U.S.-China relations given its dominant position in AI chips and data center accelerators. China represents a critical market for Nvidia’s data center products, and any easing of trade restrictions could preserve the company’s access to this lucrative segment.

Vice President JD Vance reinforced the optimistic tone, asserting that the U.S. holds a stronger position than China in the ongoing trade tensions and expressing confidence that Beijing would adopt a “reasonable” approach. China responded by reiterating it does not seek a trade war but is not afraid of one, while clarifying that its new export controls on rare earths were regulatory measures rather than outright bans. This measured response from both sides suggested a potential pathway toward negotiation rather than further escalation.
 

Nvidia Maintains Strong Fundamentals Amid Trade Relief

As of the October 10 close, Nvidia maintained a massive market capitalization of $4.457 trillion, with a trailing P/E ratio of 52.00 and a forward P/E of 29.94. The company’s most recent quarterly earnings (Q2 FY26) showed revenue of $46.74 billion and earnings of $25.78 billion, demonstrating continued strong performance in the AI-driven data center business. Analysts remain largely bullish on the stock, with the average price target of $216.25 suggesting approximately 18% upside from the pre-market level, and a 1-year target estimate range spanning from $100 to $300.

Nvidia’s valuation metrics reflect its premium status in the semiconductor industry, trading at 28.19 times trailing sales and maintaining a profit margin of 52.41%. The company’s return on equity of 109.42% underscores its exceptional profitability and capital efficiency. With the upcoming earnings date scheduled for November 19, 2025, investors will be closely watching for management’s commentary on the impact of trade dynamics and sustained demand for AI infrastructure. The company’s year-to-date return of 36.34% significantly outpaces the S&P 500’s 11.41% gain, though the stock remains well below its 52-week high of $195.62.

Analyst sentiment remains predominantly positive, with top-rated firm Bernstein maintaining an “Outperform” rating. Most recently, Cantor Fitzgerald raised its price target from $240 to $300 while maintaining an “Overweight” rating on October 9, 2025. The trade de-escalation signals could further support Nvidia’s growth trajectory, particularly if it leads to sustained access to Chinese markets and reduced supply chain disruptions for the company’s data center and AI products that drive the majority of its revenue growth.

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