Nvidia (NVDA) Stock: Chip Giant Breathing Down Apple’s Neck as Market Cap Race Heats Up

TLDR

Nvidia stock is extending gains and challenging Apple for second-highest market cap Trump administration rescinded Biden’s AI diffusion rule, benefiting chip exporters Nvidia announced partnership with Saudi Arabia’s Humain to sell 18,000 Blackwell chips Saudi Arabia committed $600 billion in US investments, including $20 billion for AI data centers Nvidia’s market cap climbed back above $3 trillion after recent stock recovery

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Nvidia shares continued their upward momentum on Wednesday, building on Tuesday’s strong performance as the chip giant briefly surpassed Apple to become the world’s second most valuable company. The stock’s rise comes amid favorable policy changes and major international deals.

NVIDIA Corporation (NVDA)

The Trump administration’s decision to rescind the planned AI diffusion rule is providing significant tailwinds for Nvidia and other semiconductor makers. This policy change removes restrictions on advanced chip exports that were established under the Biden administration.

“These new requirements would have stifled American innovation and saddled companies with burdensome new regulatory requirements,” stated the U.S. Bureau of Industry & Security.

At the same time, the White House took a firm stance against Chinese tech, warning that purchasing Huawei’s Ascend AI chips violates U.S. export controls.

Nvidia’s market capitalization climbed back above $3 trillion this week. The company briefly topped Apple in market value on Tuesday before closing slightly behind at $3.17 trillion compared to Apple’s $3.18 trillion.

In premarket trading Wednesday, Nvidia was up 3% to $133.73, while Apple was down 0.3%. These movements suggest Nvidia will soon overtake Apple again.

International Partnerships Fuel Growth

The chip maker’s new partnership with Saudi Arabian AI firm Humain is giving shares an extra boost. CEO Jensen Huang attended the Saudi-U.S. investment forum with President Trump, securing a deal to sell more than 18,000 of Nvidia’s latest Blackwell chips.

These chips will power hyperscale AI data centers in Saudi Arabia. This agreement marks just the first phase of a broader partnership.

Humain will also use Nvidia’s Omniverse cloud platform for applications in a new 500-megawatt data center. The Saudi company aims to become a leading builder of AI infrastructure in the kingdom.

Tareq Amin, CEO of Humain, described the partnership as “a step forward in realizing the Kingdom’s ambitions to lead in AI and advanced digital infrastructure.”

The Trump administration is also considering allowing the United Arab Emirates to import 500,000 advanced chips annually through 2027, according to Bloomberg News.

Other semiconductor stocks are also seeing gains. Marvell Technology added 1.5%, Advanced Micro Devices rose 3.1%, and Arm Holdings was up 1.5% in premarket trading.

Nvidia’s stock recovery comes after shares had plunged more than 30% from their 2025 highs. The recent rebound reflects renewed investor confidence in the company’s growth prospects.

The White House announced $600 billion worth of Saudi Arabian investments in the United States during the investment forum. This includes a planned $20 billion specifically for AI data centers and energy infrastructure.

While Nvidia wasn’t explicitly named in this broader investment announcement, industry analysts expect the company to supply chips and related products for the expansion of data centers and AI infrastructure in both countries.

After recent market volatility driven by concerns about tariffs and export restrictions, these developments suggest a more favorable outlook for Nvidia and the semiconductor sector as a whole.

The company’s latest Blackwell chips continue to see strong demand as AI infrastructure buildout accelerates globally. Investors appear confident that Nvidia remains well-positioned to capitalize on the growing AI market despite recent stock price fluctuations.

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