Nvidia Stock Jumps: How AI Spending and Policy Shifts Are Fueling Growth

Nvidia shares climbed over 1% in pre‑market trading on July 24, 2025—capping a 2.3% gain the day before—as bullish news from both Google (Alphabet) and the Trump administration drove investor confidence [Moomoo]. This article examines the drivers behind the rally and why it matters for AI hardware markets.

Alphabet’s Bold AI Spending

Alphabet shocked markets by raising its 2025 capital expenditure (capex) forecast from around $75 billion to $85 billion, signaling intensifying AI infrastructure investment—especially data centers and servers loaded with Nvidia GPUs [MarketWatch]. With Google now processing over 980 trillion AI tokens per month—double May’s volume—demand for GPU horsepower is trending upward [Barron’s]. Analysts at Morgan Stanley and others noted Nvidia benefits most among chip suppliers.

Trump’s AI Action Plan & Trade Truce Wins

At a recent AI summit, President Trump unveiled a sweeping “Winning the AI Race” policy, featuring 90+ federal actions to speed up AI data‑center permitting, boost semiconductor fabrication, and support exports—especially to allies [Investors]. Trump also admitted he once considered breaking up Nvidia to boost competition, until advisers explained it was “not easy in that business.” He later praised CEO Jensen Huang in person [Investing.com]. Crucially, Trump’s administration approved resumption of H20 AI chip exports to China, reversing prior restrictions—adding a potential multibillion‑dollar revenue stream.

Buy‑Side Momentum & Analyst Upgrades

Citi raised its price target for Nvidia from $180 to $190, anticipating strong margins for Nvidia’s Blackwell architecture and growth driven by sovereign AI spending, especially in 2026. Despite some headwinds like potential export limits to Southeast Asia, analysts expect sustained demand to underpin mid‑70% gross margins and a robust outlook.

What This Means for Investors

• Demand tailwinds: With Google ramping capex and Trump’s plan smoothing policy hurdles, Nvidia sits at the heart of global AI growth.
  
  
• China reopening: Lifting H20 export ban may unlock billions in revenue previously lost—China represented around $17 billion in prior fiscal revenue.
  
  
• Policy clarity: Trump’s embrace of Nvidia and his AI plan signal federal commitment to U.S. leadership and infrastructure expansion, reducing regulatory uncertainty.
  
  

Conclusion

Nvidia’s latest stock surge is more than a headline—it’s a signal of shifting tides in AI infrastructure, global trade policy, and investor sentiment. With one of the world’s largest tech giants doubling down on AI spending and a green light for renewed chip exports, Nvidia is positioned not just as a market leader, but as a foundational pillar of the global AI ecosystem.

For investors, tech watchers, and futurists alike, the message is clear: the AI race is accelerating—and Nvidia isn’t just in the race, it’s building the racetrack.