Nvidia leaves China's 'DeepSeek ghost' behind with $1 trillion rally; reason includes Microsoft, Meta, Google and Amazon

Nvidia Corp shares have surged $1 trillion in two months, with investors betting on further gains as concerns fade and optimism grows, according to Bloomberg. Nvidia's recent earnings report addressed key worries, including U.S. restrictions on advanced

semiconductor sales to China

, AI spending outlooks, and Nvidia’s ability to scale up its Blackwell chip supply. With this the stock left behind the huge dent that China's DeepSeek made in US stock market in January this year. DeepSeek set off a $969 billion bomb of value by the US technology stocks in the S&P 500. Nvidia was battered most in the carnage. Nvidia alone lost $596 billion in value, which is more than more than 485 S&P 500 stocks are individually worth.Nvidia's nearly $600 billion drop in value in one day is reportedly more than 200% larger than the No. 2 hit: A $194 billion loss at Broadcom.“Those questions have been answered in the positive for Nvidia,” said Thomas Martin, senior portfolio manager at Globalt Investments. “It’s time to ramp back up your ownership,” Bloomberg reported.After a two-and-a-half-year rally driven by demand for AI chips, Nvidia’s stock fell earlier in 2025 due to fears over President Trump’s trade policies and potential reduced spending by major customers. Since April’s low, the stock has climbed over 45%, reaching a $3.4 trillion market value, just behind Microsoft, per Bloomberg.

Major clients like Microsoft, Meta, Alphabet, and Amazon, which drive over 40% of Nvidia’s revenue, are projected to spend $330 billion on AI infrastructure in 2026, up 6% from this year, according to Bloomberg’s analyst estimates. “We just haven’t seen any kind of slowdown in AI spending,” said Samuel Rines of WisdomTree, who believes Nvidia’s price-to-earnings ratio could hit the high 30s or low 40s.Nvidia trades at 29 times projected profits, below its decade-long average of 34, and its PEG ratio of under 0.9 is the lowest among the Magnificent Seven, report noted. Despite risks from U.S. tariffs and reliance on China for 13% of Q1 revenue, deals with Middle Eastern governments and a strong product pipeline are expected to mitigate challenges.Analysts are overwhelmingly positive, with only one of 78 rating Nvidia a sell and an average price target of $170, implying a 24% gain, Bloomberg data shows. Despite this, Nvidia is owned by only 74% of long-only funds, trailing Amazon, Apple, and Microsoft, suggesting room for more buying, per Bank of America data cited by the report.“There were a lot of investors that really got out of this market prematurely and now they’re kind of being forced back into it,” said CFRA Research’s Angelo Zino, according to Bloomberg.