Nvidia (NASDAQ: NVDA) stock is soaring in Wednesday's trading. The company's share price was up 14.1% as of 2:10 p.m. ET amid a 7.8% rally for the S&P 500 index and a 10.1% jump for the Nasdaq Composite index.
Nvidia's valuation is surging today after President Donald Trump announced a moderation on tariff policy and a 90-day postponement on tariffs. The stock is also getting a boost from news about the company's expanded partnership with Alphabet.
Nvidia stock jumps on Trump's tariff policy shift
In a message posted to Truth Social today, Trump said that he had authorized a 90-day pause on his "reciprocal tariffs" for all countries except China. Instead, the base tariff rate of 10% will apply during the reciprocal tariff pause. On the other hand, Trump also said that the tariff rate on Chinese goods would be raised to 125% -- up from the 104% import tax that went into effect after midnight yesterday.
Investors appear to be very happy with the shift in tariff policy, and Nvidia stock is seeing a big rebound on the news. But even after today's valuation surge, the company's share price is still down roughly 17.5% year to date.
Nvidia and Alphabet are expanding their partnership
At Alphabet's Google Cloud Next conference today, Nvidia CEO Jensen Huang said that the two companies were teaming up to launch on-premise agentic artificial intelligence (AI) services and expand existing cloud offerings. Alphabet also said that its Google Cloud division would be one of the first customers to receive Nvidia's new Vera Rubin graphics processing units. While the tariff news is by far the biggest catalyst for Nvidia's stock gains today, the expanded partnership with Alphabet is also good news for investors.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy.
