In a notable development, Nvidia has returned to positive territory, reflecting the impact of strategic engagements under U.S. President Donald Trump’s administration. On April 30, 2025, Nvidia CEO Jensen Huang and President Trump participated in an ‘Investing in America’ event in Washington, D.C., underscoring the administration’s focus on bolstering domestic and international business ties.
The “Magnificent Seven” — a group of prominent stocks including Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla — significantly contributed to the S&P 500’s impressive 23.31% gain in 2024. However, these stocks faced challenges due to Trump’s tariffs, particularly those heavily reliant on global supply chains like Apple and Nvidia. Meanwhile, Meta and Microsoft, which primarily generate revenue from digital services, experienced upward trends in their share prices this year.
On Wednesday, Nvidia joined Meta and Microsoft as the third “Magnificent Seven” member to trade positively year-to-date. This shift is particularly noteworthy for Nvidia, a company dealing primarily in tangible products. The recovery signals the potential benefits of Trump’s dealmaking, including tariff agreements and international partnerships like those with Saudi Arabia, enhancing the business climate. However, market volatility remains a concern, as evidenced by fluctuations around Trump’s “Liberation Day.”
U.S. markets displayed mixed results on Wednesday. The S&P 500 increased slightly by 0.1%, while the Nasdaq Composite rose 0.72%, buoyed by a 4.7% increase in AMD shares following a $6 billion share buyback announcement and growth in Nvidia shares. Conversely, the Dow Jones Industrial Average fell by 0.21%. The pan-European Stoxx 600 ended its four-day winning streak with a 0.24% dip, although Burberry shares surged by 17% due to cost-cutting measures and a turnaround strategy.
Nvidia’s shares rose over 4% on Wednesday, driven by the announcement of a deal to supply over 18,000 top-tier artificial intelligence chips to Saudi Arabia. This advancement positions Nvidia as the latest “Magnificent 7” stock to regain positive momentum amidst broader market recovery, while Amazon, Alphabet, Tesla, and Apple continue to face year-to-date losses.
In another major business development, Boeing and Qatar Airways revealed a significant deal for the airline to purchase up to 210 jets during President Trump’s state visit with the emir of Qatar. This order, the largest in Qatar Airways’ and Boeing’s history, represents a substantial boost for Boeing, which has struggled to post profits since 2018.
During the U.S.-Saudi Investment Forum, attended by influential figures like Tesla’s Elon Musk and BlackRock’s Larry Fink, President Trump expressed strong support for Saudi Arabia, reaffirming strategic ties. Additionally, Trump met with Syrian leader Ahmed al-Sharaa, reflecting ongoing diplomatic engagements.
In the corporate sector, Klarna announced a significant reduction in its workforce by approximately 40%, attributed to advancements in artificial intelligence and natural attrition. The company highlighted that AI has replaced the work of 700 customer service agents. Klarna also postponed its initial public offering following the announcement of tariffs by President Trump.
Investment insights from Point72 founder Steve Cohen suggest a possibility of stocks retesting April lows, with a 45% recession risk. Nonetheless, Cohen maintains that a market decline would not necessarily equate to a severe economic downturn.
In parallel, Nvidia’s global strategy continues to evolve, as evidenced by its agreement with Saudi Arabia to enhance the kingdom’s artificial intelligence capabilities. However, the Trump administration’s new AI chip export rules targeting China introduce additional challenges for Nvidia. The Commerce Department issued warnings against the use of U.S. AI chips in Chinese models, emphasizing “diversion tactics” and securing supply chains.
These new export restrictions followed a U.S.-China agreement to pause most tariffs, with the White House also removing the “AI Diffusion Rule,” adding complexity to Nvidia’s operational landscape.
