Nvidia (NVDA) is finally feeling some relief after a week of intense pressure. On Wednesday, Nvidia shares jumped over 3.2% in pre-market trading, climbing to $183.77. This recovery follows a major breakthrough where President Donald Trump announced a surprise two-week ceasefire with Iran, pulling back from an 8 p.m. deadline that many feared would lead to a total war. NVDA stock’s recovery comes just days after a chilling video from the IRGC that personally targeted CEO Jensen Huang and labeled 18 American tech companies as military targets.
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Global Peace Talks Create a Market Rally
The stock market is breathing a massive sigh of relief after a night of extreme tension. Just hours before his deadline on Tuesday, when he had warned that a “whole civilization would die tonight,” Trump posted on Truth Social that he had agreed to suspend all attacks for 14 days.
The move follows intense diplomatic efforts by Pakistan, which acted as the middleman for the deal. The agreement requires Iran to keep the Strait of Hormuz fully open and safe for all shipping. While the ceasefire is temporary, it provides a much-needed window for both sides to meet in Islamabad this Friday to discuss a long-term peace plan. This pause in hostilities is a welcome relief for Nvidia after a week of being directly in the line of fire.
Tech Giants Still Face “Digital War” Threats
Despite the ceasefire, the atmosphere remains tense for tech leaders. The IRGC recently escalated its rhetoric by releasing a chilling video that labeled 18 American tech companies as legitimate military targets.
The video specifically showed photos of Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman, framing them as key figures in a “digital war.” The Iranian military arm has threatened to destroy facilities like the $30 billion Stargate data center in Abu Dhabi, which is designed to house 500,000 Nvidia GPUs. The IRGC claims these companies are helping “terrorist operations” through their AI technology. This personal targeting of CEOs was a major reason for the stock’s recent drop, as investors worried about the physical safety of both the company’s leaders and its billion-dollar AI factories in the region.
Market Confidence Rebounds on Ceasefire News
The news of the two-week pause has given the stock the boost it needed to reclaim its value. The pre-market jump shows that investors are willing to look past the IRGC’s threats if the threat of an all-out war is removed.
While the death threat videos remain a concern, the reopening of the Strait of Hormuz and the return to the negotiating table have calmed the immediate panic. The ceasefire allows the market to refocus on the company’s strong earnings rather than geopolitical nightmare scenarios.
Is Nvidia Stock Still a Buy?
Despite the threats, Nvidia stock (NVDA) still commands a Strong Buy rating. This rating is based on 41 Buys, one Hold, and one Sell rating assigned in the past three months. The average 12-month NVDA price target of $273.57 implies 53.6% upside from current levels.
