Nvidia's (NVDA -1.70%) stock price jumped 0.5% to $183.10 on Tuesday, notching a fresh all-time high of $184.48 (intraday) despite below-average trading volume. The stock is now up 74.9% over the past year, and it continues to outperform the broader market as enthusiasm for artificial intelligence (AI) hardware remains strong.
The broader market posted solid gains as well. The Nasdaq Composite climbed 1.4%, while the S&P 500 added 1.1%, supported by favorable inflation readings and sustained investor appetite for growth and tech names. Nvidia's peers also rallied, with Advanced Micro Devices (AMD 5.25%) gaining 1.6% to $174.95 and Broadcom (AVGO -2.43%) jumping 2.9% to $312.83.
Nvidia and AMD were the center of attention after multiple news outlets confirmed a landmark deal between the companies and the U.S. government. Under the agreement, Nvidia and AMD will regain access to China's AI chip market, provided they share 15% of revenue from sales of certain high-end chips with the U.S. government. The arrangement allows both companies to continue shipping modified chip models while easing national security concerns through financial oversight.
The policy is expected to preserve a major international revenue stream for Nvidia while tightening U.S. control over next-gen chip exports. Analysts note that while the 15% revenue cut may trim margins, regaining Chinese market access could outweigh those costs -- especially in the near term.
Market data sourced from Google Finance and Yahoo! Finance on Tuesday, Aug. 12, 2025.
