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Shares of Nvidia (NASDAQ: NVDA) jumped 3.5% today.
That’s due to news reports that President Trump may delay tariffs on semiconductors from Taiwan.
President Trump plans to announce new tariffs on April 2.
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The White House plans to apply a 15% tariff on nations that have ongoing trader imbalances with the United States.
Nvidia is a fabless semiconductor company. Nearly 100% of its chips are produced by Taiwan Semiconductor (NYSE: TSM) in Taiwan.
Nvidia and Taiwan Semiconductor may have dodged a bullet.
On March 3, TSM announced a $100 billion investment to make semiconductors in Arizona.
The investment will create 40,000 construction jobs over the next 4-years.
TSM shares were also up 3% on today’s news.
Trump may be rewarding TSM’s $100 billion investment by choosing not to initiate tariffs on chips from Taiwan.
Here’s why this is important…
Financial markets like certainty. Uncertainty creates volatility for stocks. And that’s why we’ve seen the S&P 500 fall 10% in the last month.
President Trump’s tariffs have been a huge overhang on the stock market.
Investors in tech stocks will certainly welcome any moves to limit tariffs on semiconductors.
Next generation Nvidia chips are critical for the Artificial Intelligence revolution. Avoiding unnecessary tariffs is definitely a positive development for the tech sector.
That’s why the Nasdaq is up 2% today. And chip stocks like Nvidia, TSM, and Advanced Micro Devices (NASDAQ: AMD) are seeing even bigger gains.
The AI boom is unstoppable.
That’s why Jeff Bezos, Bill Gates and Sam Altman are quietly investing billions in a new breakthrough called the Oppenheimer AI Project.
This breakthrough tech is critical for powering Artificial Intelligence data centers.
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Ian Wyatt