Nvidia emerges as a key winner from US-China trade deal

The recent US-China agreement regarding trade tariffs has significantly influenced the technology sector in the United States. On May 8, 2025, Wedbush analyst Dan Ives remarked that despite the concerns brought about by tariffs, particularly ones enacted during President Donald Trump's tenure, the artificial intelligence (AI) industry remains on an upward trajectory. Ives emphasizes that the industry cannot be hindered by these tariffs and continues to thrive amid increasing demand, particularly in the semiconductor market, which is projected to reach between $1.7 trillion and $2.4 trillion by 2040. Ives mentioned that the stronger companies within this sector would only grow more robust, highlighting Nvidia as a pivotal player in the evolving AI landscape. This comes as the global market for semiconductors is defined by the booming demand in various tech sectors, including gaming and data centers. Despite experiencing a minor decline of over 12% in shares over the year, Nvidia's stock has rebounded by more than 22% recently, outperforming the S&P 500's rise in the same period. Ives believes that Nvidia's near-term growth will be supported by favorable consumption and investment trends, fueled by substantial private investments in AI technology. The analysis takes a closer look at different companies that are expected to capitalize on the ongoing AI revolution. Ives suggests that besides Nvidia, Chinese tech giant Baidu is also strategically positioned in the AI domain, offering a robust platform for developing comprehensive AI solutions despite ongoing US-China trade tensions. He notes Baidu's recent advancements with AI models showcasing reasoning capabilities. Furthermore, he highlights Snowflake as an important player in the software arena, leveraging AI solutions to broaden access to these technologies across various industries. On May 12, 2025, during a segment on CNBC's 'Worldwide Exchange,' Ives reaffirmed that the recent agreement to reduce tariffs has cultivated a favorable environment for tech investments. He describes the current state of affairs as a 'dream scenario' for tech investors while indicating that Nvidia stands out as a major beneficiary of these changes. Ives explained how the pause in tariffs could potentially enhance Nvidia's market position, especially considering their AI chips, which are subject to export controls. His insights suggest that this strategic pause in tariffs could result in a bullish sentiment for tech shares, influencing investment strategies across the board.