Nvidia (NVDA) Stock: CEO Keynote and Trade Talks Drive Monday Rally

TLDR

Table of Contents

Nvidia stock rose 0.5% in premarket trading Monday following a 1.2% gain on Friday
CEO Jensen Huang delivered keynote at London Tech Week alongside UK Prime Minister Keir Starmer
Company announced AI initiatives including establishing UK sovereign AI industry forum with British companies
US-China trade talks scheduled for Monday in London could impact semiconductor sector
Analyst debate continues over whether Nvidia represents bargain or value trap at current $3.4 trillion valuation

Nvidia stock climbed 0.5% in premarket trading Monday, extending Friday’s 1.2% gain as investors watched two key developments unfold across the Atlantic.

The semiconductor giant opened Monday’s session at $142.40. S&P 500 futures gained 0.1% while Nasdaq futures remained flat.

CEO Jensen Huang took center stage at London Tech Week early Monday morning. He delivered the opening keynote speech alongside UK Prime Minister Keir Starmer.

Nvidia CEO Jensen Huang said the UK was in a sweet spot for AI companies to thrive, but lacks infrastructure
He spoke with UK Prime Minister Keir Starmer at London Tech Weekhttps://t.co/8B7RHaKG8J pic.twitter.com/yW61Z1aILz
— Bloomberg (@business) June 9, 2025

The timing of Huang’s appearance wasn’t coincidental. Nvidia used the platform to announce several artificial intelligence initiatives targeting the UK market.

The company revealed plans to establish a UK sovereign AI industry forum. The partnership includes major British companies like BAE Systems, BT, and Standard Chartered.

These moves reflect Nvidia’s push to expand its AI footprint beyond US borders. The UK represents a key market for the company’s data center chips.

Trade Talks Add Another Layer

Separately, US-China trade discussions were set to begin Monday in London. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer planned to meet their Chinese counterparts.

The talks follow last Thursday’s phone conversation between President Donald Trump and Chinese leader Xi Jinping. The two countries agreed to pause a big chunk of tariffs on each other’s goods in Geneva last month.

For Nvidia, these discussions matter. China represents a crucial market for semiconductor companies, despite ongoing trade tensions.

Other chip stocks showed mixed movements Monday morning. Advanced Micro Devices gained 0.9% while Marvell Technology jumped 1.7%.

Broadcom stock rose 0.4% in premarket trading. Qualcomm climbed 0.4% after announcing its $2.4 billion acquisition of London-listed Alphawave IP Group.

Valuation Questions Persist

Despite Monday’s gains, questions about Nvidia’s valuation continue to swirl. The company now carries a market capitalization of $3.4 trillion.

Some analysts see potential value at current levels. Nvidia’s first-quarter revenue jumped 69% compared to the same period last year.

The company generated $130 billion in revenues over the past year. This growth came as AI demand transformed the semiconductor landscape.

Others worry about the stock’s rapid ascent. Nvidia shares have surged 1,499% over the past five years.

The stock trades at a price-to-earnings ratio of 46. This multiple leaves little room for error if growth slows.

Several risk factors could impact future performance. Chip demand might fall after recent surges. Lower-cost rivals could gain market share.

Trade disputes between major economies could reduce sales volumes. These factors make valuation particularly challenging.

Some investors prefer to wait for better entry points. They seek larger margins of safety before adding positions.

The company’s stock price has climbed 47% since April alone. This rapid gain reflects both optimism and uncertainty about future prospects.

Nvidia announced plans Monday to launch more advanced proprietary chip designs. Wider AI adoption could drive additional demand for the company’s products.

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