Nvidia's stock rose approximately 2.4% in premarket activity on Tuesday, buoyed by a report suggesting potential tariff relief for its largest customers. According to the Financial Times, the U.S. administration is considering exemptions from upcoming semiconductor duties for companies like Amazon, Google, and Microsoft, specifically for chips used in artificial intelligence data centers.
Tariff Exemptions Linked to TSMC Investment
The proposed carve-outs are reportedly tied to investment commitments from Taiwan Semiconductor Manufacturing Co. in the United States. While not finalized, such a move would alleviate a significant cost pressure for cloud providers aggressively expanding their AI infrastructure. This development comes as the industry grapples with the financial impact of existing and proposed tariffs on advanced semiconductors.
Separately, Reuters reported that Apollo Global Management is close to securing a $3.4 billion loan to finance an entity that would acquire Nvidia hardware for leasing to Elon Musk's xAI. In this arrangement, Nvidia would act as a cornerstone investor, underscoring sustained demand for its products.
Competitive and Macroeconomic Landscape
The competitive field is intensifying. Cisco announced a new data-center networking chip and router aimed at rivals Broadcom and Nvidia, with plans to launch the product in the second half of the year. Meanwhile, broader market attention is focused on upcoming economic indicators. January's consumer inflation data, scheduled for release on February 13, and upcoming employment figures could influence market sentiment.
Nvidia faces its next major milestone on February 25, when it reports fourth-quarter and full-year 2026 results. While the potential tariff exemption provides a near-term catalyst, investors remain watchful of competitive threats, macroeconomic data, and the final outcome of the trade policy negotiations.
