Big Tech and Chip Stocks Rise on Favorable Tariff Ruling and Nvidia Earnings
Stock markets are trending higher in premarket trading, with Big Tech’s Magnificent Seven and major chipmaker stocks leading the gains. Nvidia Corporation (Nasdaq: NVDA) shares are up 6% in premarket trading.
The surge is attributed to three key factors: a U.S. Court of International Trade ruling declaring President Trump’s ‘Liberation Day’ tariffs illegal, Nvidia’s strong Q1 fiscal 2026 earnings, and Elon Musk’s announcement that he’s leaving the Trump administration.
Trump Tariff Ruling Boosts Big Tech Stocks
The court’s decision declared that Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose universal tariffs was unlawful. This ruling is expected to benefit Big Tech companies, many of which source products or components from China, the country most affected by the tariffs.
Big Tech’s Magnificent Seven stocks are trading higher: Alphabet Inc. (Nasdaq: GOOG) up 1.29%, Amazon.com, Inc. (Nasdaq: AMZN) up 2.5%, Apple Inc. (Nasdaq: AAPL) up 2.4%, Meta Platforms, Inc. (Nasdaq: META) up 1.4%, Microsoft Corporation (Nasdaq: MSFT) up 0.8%, NVIDIA Corporation (Nasdaq: NVDA) up 6%, and Tesla, Inc. (Nasdaq: TSLA) up 2.49%.
Elon Musk’s Departure from Trump Administration
Tesla’s stock is also benefiting from Elon Musk’s announcement that he’s leaving the Trump administration, where he headed the Department of Government Efficiency (DOGE). Musk’s involvement in politics had negatively impacted Tesla sales in key markets.
Nvidia’s Strong Earnings Lift Chip Stocks
Nvidia reported revenue of $44.1 billion, up 12% from the previous quarter and 69% from the same quarter last year. Data center revenue was $39.1 billion, a 10% rise from the previous quarter and 73% from the same quarter last year. This strong performance is boosting not only Nvidia’s stock but also other chipmaker and chipmaker-adjacent stocks.
Other chip stocks are also rising: Advanced Micro Devices, Inc. (Nasdaq: AMD) up 2.9%, Arm Holdings plc (Nasdaq: ARM) up 3%, ASML Holding N.V. (Nasdaq: ASML) up 1.6%, Broadcom Inc. (Nasdaq: AVGO) up 2.9%, Intel Corporation (Nasdaq: INTC) up 1.28%, Micron Technology, Inc. (Nasdaq: MU) up 2.4%, QUALCOMM Incorporated (Nasdaq: QCOM) up 1.69%, and Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) up 1.1%.
Nvidia’s earnings beat is seen as a positive sign for the demand for artificial intelligence (AI) technology, further boosting the sector.
