Nvidia's stock surged over 5% following the announcement of a 90-day tariff pause between the US and China, which significantly reduced tariffs by 115 percentage points. This rally in tech stocks, particularly for Nvidia, is attributed to the easing of trade tensions and the ongoing investment cycle in artificial intelligence, positioning Nvidia as a leader in the AI chip market. Analysts predict that Nvidia's market capitalization could reach new all-time highs, driven by its pivotal role in the AI revolution and strong demand for its chips.

The tariff truce not only benefits Nvidia but also has positive implications for other tech giants like Apple, which faced potential tariff-related losses. While the easing of tariffs is expected to alleviate supply chain issues and boost trade between the US and China, concerns remain about the enforcement of export controls, particularly regarding advanced chips sold to countries like Saudi Arabia. Analysts caution that companies may still face challenges in managing their supply chains through China, despite the temporary relief from tariffs.