Nvidia Stock Chasing 5-Day Winning Streak. The AI Trade Is Back.

Nvidia again became the world’s most valuable company, ahead of Microsoft, this week. (David Paul Morris/Bloomberg)

Nvidia stock was edging up further Friday as traders returned to the artificial-intelligence trade after a period of market turmoil and geopolitical tension.

Shares of the chip maker were up 0.8% to $156.31 in early trading, on track to rise for a fifth straight day. The tech-heavy Nasdaq Composite index was up 0.3%.

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It comes after Nvidia shares hit a record high Wednesday, surpassing Microsoft to reclaim the crown as the world’s most valuable company.

Coming into Friday trading, the stock was up 7.8% so far this week. Shares have made a remarkable recovery since early April when they hit a 52-week low following President Donald Trump’s sweeping global tariffs, which were later put on a 90-day pause to allow for trade deals.

Nvidia stock is up more than 60% since April 4 when they hit $94.31.

Other chip makers are also doing well as some of the most pressing concerns for investors seem to be easing. Advanced Micro Devices is up 12% this week, Broadcom has gained 8%, and Marvell Technology rose 9%.

Investors had dumped tech stocks and other riskier assets as the Israel-Iran war raged, piling into safer ones as they sought a haven. But as the cease-fire between the two countries appeared to have held for another day, the AI trade is returning with full force.

The threat of tariffs could also be diminishing. On Thursday, White House press secretary Karoline Leavitt played down the importance of the looming July 9 trade deadline. “The deadline is not critical,” she said at a press briefing.

Write to Elsa Ohlen at elsa.ohlen@barrons.com