Market Analysis

Nvidia, AMD, and Meta Propel Tech Stocks Higher on Tariff Easing and AI Milestones

Amos Simanungkalit · 25 Mar68.5K Views

Image Credit: MSN

Tech stocks led the U.S. stock market rally on Monday, spurred by reports of more targeted tariff plans from President Trump and a new AI breakthrough from Jack Ma's Ant Group. Shares of major tech companies saw significant gains, with Meta (META) up 3.7%, Nvidia (NVDA) rising 3.1%, and AMD (AMD) surging 6.9%. The tech-heavy Nasdaq Composite (^IXIC) climbed 2.3%, marking a strong start to the final full week of March trading.

The market's broad rally followed news late Sunday that President Trump would narrow the number of U.S. trading partners affected by reciprocal tariffs on April 2. Reports also indicated that some industry-specific tariffs, including those on cars and chips, would be limited.

In the tech sector, news from China fueled optimism, as Ant Group, backed by Jack Ma, revealed it had trained more affordable AI models using Chinese-made chips as well as those from AMD. This development highlights the continuing advancements in AI technology. Nvidia CEO Jensen Huang also emphasized at the GTC Conference that the AI industry's computing needs are greater than previously anticipated, particularly with the rise of lower-cost AI models, such as those from China’s DeepSeek.

Meanwhile, South Korean AI chip startup FuriosaAI rejected an $800 million offer from Meta, signaling strong confidence within AI startups to pursue independent growth. This move alleviated potential concerns for Meta shareholders, who might have faced regulatory challenges and integration costs.

Despite these positive tech developments, trade news remained the dominant driver in the market. While AI may not have a clear winner or loser due to Trump's tariffs, tech stocks continue to lead the market, both on the rise and in downturns. As Yahoo Finance's Josh Schafer pointed out, tariff news remains a crucial catalyst for market sentiment, especially following the Federal Reserve's recent announcements. Tariffs have increasingly shaped the market's direction, outweighing concerns over the U.S. economy's health, corporate profits, and Fed policy.

Market strategist Jay Woods of Freedom Capital Markets noted that without significant tariff-related headlines, markets rallied, underscoring the key role tariffs are playing in shaping market movement.