Nvidia Earnings Send Chip Stocks Higher, But Reported New Trump Tariff Plans Could Broaden The Trade Fight

Semiconductor ETFs rallied following Nvidia’s results, with SOXX and SMH both gaining in early morning trade.

• According to a Politico report, the Trump administration is considering tariffs that could extend beyond chips to products such as laptops, gaming consoles, and data-center servers.
• The administration is also considering a phase-in period for the tariffs, according to sources cited by Politico. 
• Commerce Secretary Howard Lutnick reportedly favors a structure that would link foreign companies’ tariff relief to investment in U.S. semiconductor manufacturing.

The semiconductor sector rallied in pre-market trade on Thursday after a blowout earnings report by Nvidia (NVDA), alongside a report suggesting the Trump administration may be considering a new round of sweeping tariffs on the chip industry.

According to a Politico report, the administration is considering different approaches for a potential new round of semiconductor tariffs. The proposals are still under discussion and could be revised in the coming weeks before any official announcement.

Meanwhile, NVDA stock gained over 7% in pre-market trading after reporting earnings of $2.22 per share, beating Wall Street expectations of $2.09 per share. 

Nvidia shares were among the top trending tickers on Stocktwits at the time of writing, with retail sentiment around them jumping to ‘extremely bullish’ from ‘bullish’ territory over the past day and chatter rising to ‘extremely high’ from ‘high’ levels. Platform data showed a message volume increase of over 400% in the last 24 hours.

NVDA stock’s rally helped lift the overall semiconductor and technology sector. The iShares Semiconductor ETF (SOXX) rose nearly 3%, while the VanEck Semiconductor ETF (SMH) gained as much as 3.3%. The Technology Select Sector SPDR Fund (XLK), which tracks the broader technology sector, rose more than 2%.

Trump Administration Weighs Broader Chip Tariffs

Politico reported that one tariff approach under consideration would significantly expand the range of technology products subject to tariffs. The measures could potentially cover not only chips but also products that use them, including laptops, gaming consoles and servers used in data centers.

Commerce Secretary Howard Lutnick reportedly favors a structure that would link foreign companies’ tariff relief to investment in U.S. semiconductor manufacturing.

Such a framework could incentivize chipmakers to expand domestic production while allowing companies that commit to U.S. investment to receive some relief from the proposed duties.

The administration is also considering a phase-in period for the tariffs, according to sources cited by Politico. The sources emphasized that the framework remains under development and could change substantially before the administration announces a final policy.

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