Nvidia stock (NASDAQ: NVDA) rose in early trading on Thursday, July 24, as investor sentiment turned sharply positive following the unveiling of President Trump’s new artificial intelligence “action plan.” The plan, praised by Nvidia CEO Jensen Huang, is expected to boost the U.S. semiconductor sector through deregulation, export incentives, and accelerated data center development.
Nvidia gains on AI infrastructure support and China export breakthrough
Shares of Nvidia are up 2.25%, extending a week-long rally driven by renewed enthusiasm for U.S. AI infrastructure. On Wednesday, CEO Jensen Huang joined AMD’s Lisa Su and President Trump at a Washington tech summit to endorse a sweeping set of policies aimed at enhancing American leadership in AI chip manufacturing and deployment.
Among the highlights:
- Eased export restrictions on Nvidia’s H20 AI chip to China
- Federal backing for faster data center construction and energy delivery
- Plans to leverage the U.S. Export-Import Bank to promote U.S.-built chips abroad
“On the first day of his administration, [Trump] realized the importance of AI and energy,” Huang said. “That’s a unique American advantage.”
Huang also lobbied successfully for the reversal of a Commerce Department ban on certain Nvidia chip exports to China. The decision comes just ahead of Nvidia’s highly anticipated August earnings report.
Morgan Stanley reaffirms Nvidia as top pick before earnings
Analysts at Morgan Stanley reiterated Nvidia as a top investment idea, labeling the stock “Overweight” with a price target of $185, implying a 10.8% upside from current levels. Some analysts are even more bullish, with Street-high targets reaching $250, suggesting nearly 50% potential upside.
In a research note, Morgan Stanley said:
“We expect the pace of revenue and EPS upside to accelerate, making NVDA a compelling risk-reward into the quarter.”
Nvidia’s dominance in high-performance AI chips continues to position it as the sector’s key beneficiary in both government-backed growth and corporate demand for GPU-powered computing.
Political momentum lifts chip stocks broadly
The White House’s new AI initiative includes:
- Streamlined permitting for data centers
- Expanded access to energy infrastructure for power-hungry GPUs
- Export promotion to ensure allied nations rely on U.S. technology rather than Chinese alternatives
Trump emphasized that the U.S. will use “every rule at our disposal” to boost domestic chip production and ensure global reliance on American-made semiconductors. The announcement was met with enthusiasm across Wall Street and Silicon Valley.
What analysts are watching next
Wall Street eyes Nvidia’s upcoming earnings in early August as a major inflection point. Key factors that could influence the stock:
- Continued demand for AI chips across cloud, automotive, and enterprise sectors
- Margins amid rising manufacturing and energy costs
- Updates on China-related sales and export policy clarity
- Broader tech sector sentiment as earnings season unfolds
The long-term NVDA outlook
Despite geopolitical uncertainty and competitive pressure from AMD and Intel, Nvidia remains a market leader in the AI hardware arms race. Its GPUs are central to powering models like OpenAI’s ChatGPT, and the company’s influence is growing with each new federal initiative.
As policy and infrastructure investment accelerate, Nvidia stands to benefit both strategically and financially. Investors and analysts will be watching closely for earnings catalysts in the coming weeks—but for today, NVDA stock is firmly in bullish territory.
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