TLDR
- Nvidia shares hit new record highs after OpenAI launched GPT-5 and named Nvidia as a key partner
- Tesla is shutting down its Dojo supercomputing team and will buy more chips from Nvidia and AMD instead
- Trump’s 100% semiconductor tariffs will exempt companies building chips in the US, including Nvidia
- Chip stocks rallied across the board with AMD up 5.7% and other semiconductor companies gaining
- Nvidia has committed $500 billion to AI infrastructure in the US to avoid tariff impacts
Nvidia stock climbed to fresh record territory Friday morning, riding high on two major developments that could boost demand for its AI chips. The stock gained 0.6% in premarket trading to $181.90 after setting a new closing high Thursday.
OpenAI launched its latest GPT-5 model Thursday, powering the next generation of ChatGPT. CEO Sam Altman specifically named Nvidia as a key technology partner in a social media post. The company was the only pure-play chip maker mentioned in the announcement.
This partnership validates Nvidia’s position as the go-to supplier for AI model training. The GPT-5 launch represents another massive workload that will need Nvidia’s powerful processors.
Tesla delivered more good news for Nvidia by scrapping its internal chip development efforts. The electric vehicle maker is disbanding its Dojo supercomputing team and the associated AI training chips. Bloomberg reported Tesla will now rely more heavily on hardware from Nvidia and Advanced Micro Devices.
“It doesn’t make sense for Tesla to divide its resources and scale two quite different AI chip designs,” Tesla CEO Elon Musk posted on X Thursday evening. Tesla’s focus will shift to its AI5 and AI6 chips for inference work rather than training.
Tariff Relief Boosts Semiconductor Sector
President Trump’s semiconductor tariff plans provided another tailwind for chip stocks Friday. Trump announced a 100% tariff on chips and semiconductors but exempted companies building in the United States.
“If you’re building in the United States of America, there’s no charge,” Trump said during a press conference. Companies that have committed to US manufacturing or are already in the process will avoid the tariffs.
Nvidia has pledged $500 billion for AI infrastructure in the US, securing its exemption. Other major players like Micron committed $200 billion while Texas Instruments announced $60 billion in US manufacturing investments.
The tariff relief sent chip stocks surging across the board. Advanced Micro Devices jumped 2% in premarket trading. Micron gained 0.7% while Broadcom climbed 0.9%.
Industry Analysts See Limited Impact
Wall Street analysts expect minimal disruption from the tariff policy. Citi’s Christopher Danely said the exemptions mean “minimal impact” since US semiconductor companies already have domestic operations.
Morgan Stanley’s Joseph Moore called the outcome “something of a relief” compared to immediate implementation fears. The real cost becomes just the higher expense of building chips domestically rather than punitive tariffs.
Most advanced chips come from Taiwan Semiconductor Manufacturing Company, which is building $165 billion in Arizona facilities. This US presence exempts TSMC from the new tariffs as well.
Questions remain about implementation details and timing. Bernstein’s Stacy Rasgon noted that most semiconductors enter the US inside other products rather than as raw chips.
The US imported $45 billion worth of raw semiconductors in 2024. It remains unclear whether tariffs will apply only to raw chips or products containing them.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
