Nvidia stock rose early Wednesday after President Donald Trump sent another signal to markets that artificial intelligence would be a priority under his new administration.
The absence of Nvidia CEO Jensen Huang at the inauguration Monday stuck out as Big Tech CEOs thronged to the event. The heads of some of the biggest companies in the world all attended: Meta Platforms’ Mark Zuckerberg, Amazon.com’s Jeff Bezos, Tesla’s Elon Musk, Apple’s Tim Cook, and Alphabet’s Sundar Pichai.
Yet Trump’s first days in office saw big gains for Nvidia, propelling its market value past that of iPhone maker Apple to $3.45 trillion.
Nvidia shares were up 3% to $145.02 in premarket trading Wednesday. Shares rose 2.3% Tuesday and are up 4.9% so far in 2025.
The stock move doesn’t appear to be linked to any significant policies directly linked to Nvidia, but more about overall sentiment toward AI companies.
Late Tuesday, the White House, together with Oracle, OpenAI, and SoftBank announced a multibillion-dollar AI infrastructure plan. The joint venture, called Stargate, will build infrastructure to power the next generation of AI, starting with a new data center in Texas. Investments could reach $500 billion over four years. Nvidia was mentioned as a valued partner.
On Monday, Trump revoked an order requiring AI developers to share any results of safety tests with the government before they are disclosed to the public.
While this does sound encouraging, investors may not want to get too ahead of themselves or expect Nvidia to deliver a third straight year of triple-digit stock gains. While that is possible, most analysts think growth will be more modest.
The average target price among the 66 analysts covering the stock is $176, according to FactSet. That implies upside of 25% from Tuesday’s closing price–still respectable, but far from the 171% and 239% gains in 2024 and 2023.