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Nvidia (NVDA) stock climbed around 2% on Wednesday, outperforming the broader market as US stocks rebounded following remarks by President Donald Trump that eased fears of a geopolitical escalation over Greenland.

The rally came after Trump told the World Economic Forum in Davos, Switzerland, that he would not use military force to acquire the Danish-controlled territory, reversing a key concern that had rattled markets and triggered a sharp “sell America” trade a day earlier.

The reassurance helped restore risk appetite across global equities, lifting technology stocks in particular.

Trump addressed world leaders and business executives on issues ranging from NATO burden-sharing to US trade policy, and his comments on Greenland were closely watched after markets sold off sharply earlier in the week.

The remarks marked the first time Trump explicitly ruled out the use of military force in pursuit of Greenland, helping unwind some of the risk-off positioning that had dominated markets.

Huang warns Europe risks missing AI moment
 

Nvidia’s gains were also supported by high-profile comments from Chief Executive Jensen Huang, who appeared on stage at the World Economic Forum on Wednesday with a pointed message for European policymakers and industry leaders.

Speaking alongside BlackRock Chief Executive Larry Fink, Huang framed artificial intelligence and robotics as a historic opportunity for Europe rather than a threat to its manufacturing base.

He warned that the region is at risk of squandering its best chance at global relevance in the next technological cycle unless it moves quickly.

“You can now fuse your industrial capability, your manufacturing capability, with artificial intelligence, and that brings you into the world of physical AI, or robotics,” Huang said.

Huang downplayed Europe’s relative weakness in software, arguing that it is less important in the emerging robotics-driven phase of AI adoption.

“Europe has missed the last US-led software era,” he said, but emphasised that the region still has “an incredibly strong industrial manufacturing base worldwide.”

According to Huang, that combination of industrial strength and AI capability is precisely what is needed to succeed in robotics, a field that requires both advanced algorithms and large-scale physical production.

Nvidia doubles down on AI inference
 

Alongside the market rebound and Huang’s comments in Davos, Nvidia continued to signal a strategic shift toward inference, the process of running AI models to generate outputs rather than training them.

Nvidia has backed a funding round in AI start-up Baseten, investing $150 million as part of a $300 million round that values the company at $5 billion, The Wall Street Journal reported Tuesday.

Baseten specialises in helping companies deploy and operate large AI models efficiently.

The investment follows closely on Nvidia’s recent licensing agreement with Groq, a privately held chip start-up focused on hardware optimised for AI inference workloads.

Together, the deals underscore Nvidia’s push to strengthen its position beyond training chips and deeper into the inference layer of the AI stack.

Analysts at Mizuho estimate that between 20% and 40% of current AI workloads are dedicated to inference.

They expect that share to rise to between 60% and 80% over the next five years as AI adoption broadens across industries and applications.

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