Will Nvidia’s Momentum Drag the Magnificent Seven Back to the Top?
Chipmaker rallies 4.5% in premarket, lifting tech giants as markets shake off tariff shockwaves.
Editorial Team (ET)May 8, 2025
On Tuesday morning, Nvidia delivered a masterclass in resilience, surging more than 4.5% in premarket trading and leading a powerful rebound across the “Magnificent Seven” tech giants. The chipmaker’s premarket rally followed a 3.5% gain on Monday that capped off a whiplash session. Investors watched Nvidia’s stock sink nearly 8% intraday before sharply reversing course, a move that seems to encapsulate the market’s reaction to escalating trade tensions and tech’s inherent volatility.
Despite recent headwinds, Nvidia has remained at the forefront of investor interest thanks to its dominance in artificial intelligence infrastructure. What’s helping now? For starters, Nvidia’s AI servers, imported from Mexico, are exempt from the sweeping tariffs announced by the Trump administration last week. This exemption, highlighted by Bernstein analyst Stacy Rasgon, has positioned the company as a relative safe haven in a sector bracing for impact.
Tariffs Trigger a $1.8 Trillion Tech Shake-Up
The market's unease stems from a sweeping two-step tariff agenda unveiled by former President Donald Trump on April 2. His new global trade policy includes a baseline 10% tariff on all imports, which took effect over the weekend, and a second round of “reciprocal” tariffs set to be enforced on Wednesday. These tariffs have sent shockwaves through Big Tech, collectively wiping out an astonishing $1.8 trillion in market value from the top names over just a few days.
At the center of concern is the reliance of these firms on global supply chains. Apple, for instance, manufactures around 90% of its iPhones in China. Tesla sources key electric vehicle components from abroad. And companies like Nvidia depend on parts and products from Taiwan and Mexico. Add to that the fact that roughly half of the Magnificent Seven’s revenue comes from outside the U.S., and it’s no wonder markets are jittery.
Wall Street Reassesses the Magnificent Seven
Despite the heavy losses suffered last week, Tuesday’s premarket session revealed a new narrative: investors aren’t ready to write off the tech titans just yet. Meta, Amazon, and Tesla each jumped up to 4% in early trading. Alphabet, Google’s parent company, gained nearly 3%. Apple climbed over 2%, and even Microsoft, which saw less severe pullback than others, posted a 1.5% gain.
This broad-based recovery indicates that Wall Street still believes in the fundamental strength of these companies, even in the face of geopolitical turbulence. Nvidia, in particular, remains the crown jewel of the AI revolution. As demand for data centers, GPUs, and machine learning infrastructure grows globally, Nvidia is strategically positioned to lead, not follow.
Policy Uncertainty vs. Global Optimism
It’s clear that policy risk is now a more dominant force in market calculations. The Magnificent Seven’s fortunes are no longer driven solely by innovation, earnings, and consumer trends—they are now deeply tied to macroeconomic levers like trade agreements and tariffs.
However, Tuesday’s rebound was not just technical. Optimism also stemmed from headlines hinting at bilateral trade talks between the U.S. and Japan. The mere suggestion of diplomatic momentum was enough to buoy investor confidence. Many now hope that similar deals with key trading partners might ease the pressure on supply chains and allow Big Tech to maintain its global footprint without punitive costs.
Nvidia’s Resilience Reflects Broader Investor Sentiment
Nvidia’s premarket surge to $103.81, adding more than 6% to its value before the opening bell, underscored the company’s leadership position. The AI chipmaker wasn’t just rebounding—it was signaling a potential shift in sentiment across the tech landscape. As markets continue to react to the latest economic data, trade policies, and earnings results, Nvidia is increasingly seen as the bellwether of next-generation growth.
The company’s resilience is being carefully studied by analysts and institutional investors alike. While short-term volatility is expected, the consensus view remains bullish. Nvidia’s long-term value proposition—anchored in AI, data center growth, and chip supremacy—is proving hard to bet against, tariffs or not.
Where Do Tech Stocks Go From Here?
While the immediate future may be clouded by policy noise and geopolitical friction, tech’s underlying story hasn’t changed. Innovation, scalability, and global demand still drive this sector. The tariff shock may have caused a dramatic pullback, but it also created new buying opportunities for long-term investors.
For the Magnificent Seven, this moment is a test of resilience, adaptability, and relevance. Nvidia, by rebounding first and strongest, is setting the tone. Whether the others can follow sustainably depends on how swiftly the policy environment evolves—and how quickly these companies can pivot their supply chains and protect their margins.
In a week dominated by headlines and hesitation, Nvidia’s performance reminds us that great companies often shine brightest in uncertain times.
Conclusion
The rebound of Nvidia and the broader Magnificent Seven marks more than just a technical rally—it’s a reaffirmation of the tech sector’s enduring strength amid rising policy headwinds. Tariffs may be a new obstacle, but the momentum of innovation and global demand continues to propel these companies forward. As Nvidia leads the charge, it becomes clear: volatility is the price of leadership, and the market is still betting on the titans of tech to come out on top.
