The Tuesday rally came as part of a broader chip sector surge. Intel jumped 6.4%, AMD climbed 6.8%, and Broadcom rose 3.9%.

Taiwan Semiconductor Manufacturing Company, Nvidia’s contract manufacturer, soared 4.7% in US trading. The gains reflect renewed investor confidence in the semiconductor space.

Nvidia shares have surged over 9% since the company’s May 28 earnings report. This performance easily beats the S&P 500’s roughly 3.5% gain over the same period.

The first quarter results showed revenue that beat Wall Street expectations. The company continues to perform well despite facing new export restrictions to China, one of its largest markets.

However, the road back to record levels hasn’t been smooth. Nvidia stock struggled for months following its January peak as trade tensions escalated.

The stock faced multiple headwinds earlier this year. A cheap AI model from Chinese startup DeepSeek in January sparked concerns about demand for Nvidia’s chips.

April brought more pressure when steep tariff announcements rocked the broader market. Shares hit their lowest closing price in over a year on April 4 at just over $94.

President Trump’s administration enacted a ban on sales of Nvidia’s H20 chips to China. This restriction cost the company $2.5 billion in lost revenue during the first quarter.

The chipmaker projects an $8 billion revenue loss in the second quarter due to the China ban. Competition in the Chinese market has also intensified from domestic tech giant Huawei.

Huawei is reportedly preparing a new advanced AI chip that competes with Nvidia’s prior-generation H100 chips. This development adds pressure to Nvidia’s market position in the region.

Despite these challenges, Nvidia found support through new international partnerships. The company secured deals with Saudi Arabia and the United Arab Emirates in May.

These agreements involve supplying hundreds of thousands of AI chips to both countries. The deals helped fuel the stock’s recovery ahead of the earnings report.

The comeback even allowed Nvidia to briefly overtake Microsoft as the world’s most valuable company in early June. This milestone highlighted the market’s continued faith in the AI story.

Tuesday’s rally coincided with strong tech sector inflows. Bank of America analysts noted that tech inflows hit their highest level last week since June 2024.

The Nasdaq 100 hit a fresh record close Tuesday. The Nasdaq Composite also reached its highest levels since February.

$NVDA WELL, got our 148 target….153 ATHs.. pic.twitter.com/zGOreJqdQV

— John @ The Rock Trading Co. (@The_RockTrading) June 24, 2025

Nvidia shares stalled in Wednesday premarket trading at $147.86. S&P 500 and Nasdaq futures also traded largely flat ahead of the opening bell.

All eyes now turn to Micron Technology’s earnings report Wednesday after the close. Micron manufactures high-bandwidth memory chips that are essential for Nvidia’s AI accelerators.

The memory chipmaker joins just a few companies including SK Hynix and Samsung Electronics that can produce these specialized chips. A strong Micron report could indicate high demand for AI semiconductors.

This would serve as a positive signal for the entire AI chip sector. Such results could provide the final push needed to drive Nvidia back to record territory.

Micron stock has declined 9% over the past 12 months while Nvidia has gained 17% over the same period.