Nvidia shares surged more than 3% on Tuesday, tracking a broader recovery in equities as investor sentiment improved.
The Dow Jones Industrial Average jumped 533 points, or 1.2%, while the S&P 500 gained 1.5%.
The Nasdaq Composite rose 2%, led by strength in technology stocks.
The rally followed reports suggesting a potential de-escalation in the US-Iran conflict.
According to The Wall Street Journal, Donald Trump told aides he was open to ending hostilities even if the Strait of Hormuz remained partially closed.
Tech stocks lead gains
Technology shares, which had come under pressure since the conflict began, rebounded sharply.
The Technology Select Sector SPDR Fund rose 1.5%, reflecting broad-based gains across the sector.
Oil prices, however, remained elevated. Brent crude futures climbed 4% to trade above $117 per barrel, while West Texas Intermediate futures rose nearly 1% to above $103 per barrel.
The gains came after Bloomberg reported that Iran struck a Kuwaiti oil tanker in Dubai waters.
Dubai authorities said no injuries were reported and confirmed the safety of all crew members.
Nvidia continues investment spree
Alongside the market rally, Nvidia outlined further steps to expand its artificial intelligence ecosystem.
The company said it plans to invest $2 billion in Marvell Technology.
“Marvell is a marvellous investment,” CEO Jensen Huang said on CNBC. “Been dying to say that.”
He added that the partnership will deepen integration between the two companies, making it easier for customers to build AI infrastructure.
The collaboration will also focus on silicon photonics and AI-driven telecommunications systems.
Huang said the deal expands access to semi-custom application-specific integrated circuits, or ASICs, which are increasingly used by hyperscalers to run AI workloads.
“We’re also smart investors,” he said. “We’ve expanded the [total addressable market] for both of us as a result of this partnership, and we want to be an investor in that.”
The Marvell investment is part of a broader strategy.
Nvidia has made several $2 billion investments in recent months to strengthen its ecosystem.
These include stakes in Synopsys, CoreWeave, Coherent, Lumentum, and Nebius Group.
Nebius recently announced plans to build one of Europe’s largest data centres, further underscoring the scale of investment in AI infrastructure.
Huang described these deals as “an expansion of our ecosystem.”
Stock recovers after recent pressure
Tuesday’s gains come after a period of weakness for Nvidia.
The stock has fallen nearly 20% from its record high in October, reflecting a broader market selloff.
The decline has been driven by geopolitical tensions and concerns that rising oil prices could fuel inflation and lead to higher interest rates.
Investors have also questioned whether heavy AI infrastructure spending by major customers—such as Microsoft, Alphabet, and Amazon—will translate into near-term returns.
These concerns, combined with broader market volatility, have erased more than $700 billion from Nvidia’s market value, which now stands at around $4.15 trillion.
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