Nvidia Corp. shares rose approximately 3% in early premarket trading on Monday, joining a broader market rally after U.S. President Donald Trump and Iranian officials announced a peace agreement expected to end months of conflict. The move was driven by expectations that the deal would reopen the strategically important Strait of Hormuz, as Trump stated in a Truth Social post at 4:30 pm ET on Sunday. The gains positioned NVDA for its best session in two weeks, though the stock has underperformed peers year to date with a 10% gain compared to the iShares Semiconductor ETF's 97% rise and the Invesco QQQ Trust's 16.3% increase.
Kazakhstan Signs $10 Billion Computing Project With Firebird and Nvidia
Kazakhstan signed accords with startup Firebird Inc. on computing projects involving Nvidia that could bring as much as $10 billion in investment, according to a Bloomberg report. Kazakhstani Prime Minister Olzhas Bektenov stated the project will enable the creation of a large-scale computing cluster based on 100,000 of the latest-generation GPUs, including Nvidia GB300 and Vera Rubin models. Last year, Kazakhstan launched a supercomputer powered by Nvidia H200 chips.
U.S.-Iran Peace Deal Triggers Premarket Rally
U.S. stock futures rose and oil prices fell early Monday following Trump's announcement. "The Deal with the Islamic Republic of Iran is now complete," Trump said on his Truth Social account at 4:30 pm ET on Sunday. "Congratulations to all! I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade." In a follow-on post, Trump said the formal agreement would be signed on June 19, which is when the Strait of Hormuz would be opened "for purposes of mine removal, (and) oil will flow on both ends again for the Region."
Retail Sentiment Remains Extremely Bearish on Stocktwits
On Stocktwits, retail sentiment on Nvidia remained "extremely bearish," down from "bearish" a day earlier. Many users welcomed the stock's premarket gains and expressed optimism that the move could help Nvidia break out of its recent trading range. Nvidia's premarket move was notably smaller than its peers': Intel stock gained 3.5%, Advanced Micro Devices stock gained 4.7%, and Broadcom stock rose 4.2%. One trader commented: "$NVDA $MU $AAPL $AMD $BA As long as Iran sticks to the deal and the strait remains open OIL will come way down and so will inflation. And stocks will just keep going up."
FAQ
What caused Nvidia stock to rise in premarket trading on Monday?
Nvidia shares rose approximately 3% in early premarket trading on Monday after U.S. President Donald Trump and Iranian officials announced a peace agreement expected to end months of conflict and reopen the Strait of Hormuz.
What is the Kazakhstan computing project involving Nvidia?
Kazakhstan signed accords with Firebird Inc. on computing projects that could bring as much as $10 billion in investment. The project will create a large-scale computing cluster based on 100,000 of the latest-generation Nvidia GPUs, including GB300 and Vera Rubin models, according to Kazakhstani Prime Minister Olzhas Bektenov.
When will the U.S.-Iran agreement be formally signed?
Trump stated in a Truth Social post that the formal agreement would be signed on June 19, which is when the Strait of Hormuz would be opened for mine removal and oil flow would resume.
