Nvidia was rising early on Monday. Tariffs on chips coming into the U.S. could be off the table, at least in the short-term.
Nvidia shares were up 1.45% at $119.41 in premarket trading, while futures tracking the benchmark S&P 500 index were gaining 1%.
Apart from the broader market optimism, investors might be welcoming the apparent delay to any threat of imports of semiconductors from Taiwan, where Nvidia's most advanced chips are manufactured.
Sector-specific tariffs -- including on chips -- are now unlikely to be announced on April 2, the day the White House is planning to unveil reciprocal tariff actions, The Wall Street Journal reported on Sunday, citing an administration official.
Despite a $100 billion U.S. investment pledge from Taiwan Semiconductor Manufacturing, the contract manufacturer for Nvidia, President Donald Trump has several times reiterated his intention to place tariffs on semiconductor imports.
Meanwhile, there could be further good news in evidence that Washington is prioritizing pressure on fellow governments to deal with concerns that advanced chips are reaching China despite U.S. sanctions, rather than expanding export restrictions.
Malaysia's trade minister said the Trump administration is demanding the country monitor the movement of Nvidia chips over concerns they could end up in China, in an interview with the Financial Times.
Among other chip makers, Advanced Micro Devices was rising 1.7% and Broadcom was gaining 1.9% in premarket trading.
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