By Anthony Lee
Publication Date: 2026-05-17 12:20:00
What Happened?
Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 2.7% in the afternoon session after sentiment improved fueled by a confluence of positive news including a price target hike from Bank of America and growing optimism about AI chip demand following a high-profile U.S. trade summit in China.
Bank of America raised its price target on the stock to $320 from $300, citing an increased forecast for the AI data center market, which it now projects to reach approximately $1.7 trillion by 2030.
The primary catalyst, however, was news that CEO Jensen Huang was joining President Donald Trump’s delegation to Beijing for a summit with Chinese President Xi Jinping. This development sparked optimism among investors that it could lead to increased semiconductor sales in China, a major market for the industry.
The rally pushed the company’s market value to a historic high, briefly surpassing $5.5 trillion. Adding to the positive sentiment, Nvidia also announced a partnership with AI startup Ineffable Intelligence to develop advanced AI agents.
The shares closed the day at $225.82, up 2.3% from previous close.
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What Is The Market Telling Us
Nvidia’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it…