NVIDIA Corp NVDA is bouncing back, rising 3.7% by late Monday morning, as investors react to reports of a more measured U.S. tariff approach and fresh AI developments out of China.

Despite recently triggering a Death Cross — a traditionally bearish technical signal — Nvidia stock is seeing renewed buying pressure, signaling a potential turnaround.

Tariff Tensions Ease, AI Race Heats Up

Tech stocks led the market rally Monday after reports suggested former President Donald Trump may scale back broad tariffs on key trading partners. Among the sectors benefiting?

Chips. Tariffs on semiconductors could be delayed or limited, providing a tailwind for Nvidia and other tech giants.

Meanwhile, news from China's Ant Group — co-founded by Jack Ma — added another boost to semiconductor stocks in general. Ant reportedly trained advanced artificial intelligence models using domestically produced chips alongside processors from Advanced Micro Devices Inc AMD.

The development underscores China's AI ambitions and the ongoing demand for high-powered chips, even as U.S. export restrictions limit Nvidia's reach in the region.

Technical Signals: Mixed, But Improving?

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Despite Monday's gains, Nvidia stock remains down 11.77% year to date, with technical indicators still flashing caution:

The recent surge pumped Nvidia stock above its eight-day ($118.49) and 20-day ($117.65) simple moving averages (SMAs) — suggesting renewed buying interest in the stock amongst traders.
Despite the short-term leverage, Nvidia stock continues to trade below its 50-day ($126.57) and 200-day ($127.79) SMAs — historically bearish signs.
The Moving Average Convergence Divergence (MACD) indicator at a negative 2.54 — also leaning bearish.
The Relative Strength Index (RSI) sits at 51, suggesting Nvidia stock is neither oversold nor overbought.

However, with renewed buying pressure and easing trade war concerns, Nvidia bulls are watching for a potential reversal.

What's Next For Nvidia Stock?

CEO Jensen Huang recently highlighted growing AI demand at the company's GTC Conference, emphasizing that even lower-cost models require more computing power than previously expected.

With tariff relief on the table and AI innovation accelerating, Nvidia's next move could hinge on whether these tailwinds can overcome lingering technical weakness.

For now, Nvidia investors are enjoying some relief — just how long it lasts remains to be seen.

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