Back in Nvidia - Here’s Why

**Dave** (0:02)
Nvidia is back in the spotlight up 3% yesterday, as much as 6% overnight, after reports that Trump is planning to undo the chip export restrictions that Biden signed into law just two days before he left office. At the time, Nvidia said that the legislation would absolutely cripple America's AI dominance. Today, the company says that they welcome the new policy and direction on AI. It has been a rough year for Nvidia stock so far in 2025 It is down about 35% from its high in January. Starting with that Chinese AI model DeepSeek that made people think that there might not be as much demand for Nvidia's expensive GPUs. That caused the stock to drop 17%. Then, of course, the tariffs. Remember, $17 billion of Nvidia's revenue comes from China. Tariffs, along with new restrictions, disclosed last month on the H20 chips. Those restrictions, they said, are going to cost them $5.5 billion in Q1.
So, finally, finally, some good news on Nvidia. And today on Dumb Money, all of the reasons that we are back in Nvidia.

**Chris** (1:04)
This is Dumb Money Live.

**Dave** (1:09)
Hey there, Dave here, along with Chris and Jordan. We are Dumb Money. Welcome to Dumb Money Live. Quick reminder, there's still absolutely no tariffs on the like button. So, put the almighty algorithm to good use there. Smash away. Chris, Jordan, for me, the biggest winner in the tariff war so far has to be the people who got into Nvidia stock under $95 last month. Up over 20% from there so far. Cathie Wood and ARK Invest bought more than 100,000 more shares of Nvidia yesterday. Chris, I saw your post on X. You bought options just hours before the news broke that the Trump administration is planning to lift those export restrictions. Are you still in those options this morning?

**Chris** (1:49)
I am in those and more, yeah, in those and more. Dave, well, do you remember the talk we had prior to the Nvidia news leaking yesterday? Was it like three hours before? What did I tell you?

**Dave** (2:04)
This is literally, it was like an hour before. And it has to be my biggest missed opportunity. We talked about it. And of course, of course I didn't get in. I had the order queued up in my Robinhood app, but Jerome Powell was on television and I just didn't want to do it when he could say anything. So I didn't get in. And then the next thing I know, my phone's ringing and you're like, did you say the news? Did you say the news? I'm like, oh no, it happened again.

**Chris** (2:31)
Dude, I was up until 3 a.m. the night before. It was one of those nights where I was like, what am I doing? Is this going to even pay off? Like, this is crazy. I'm like, yeah, I have to do this.

**Jordan** (2:42)
I see how it is though. Dave gets the call ahead of time.

**Chris** (2:46)
I, Jordan, I had, Jordan, I-

**Jordan** (2:48)
I got the call afterwards. I got the flagging call.

**Chris** (2:52)
Jordan, I almost always speak to you before, Dave. I had no, Dave, you know, I had no-

**Dave** (2:57)
Yeah, I think we're talking about something else and you're like, did you, I just loaded up on a bunch of Nvidia calls. I'm like, what?

**Chris** (3:04)
The thing is, I had no idea that the news is going to break that quick. I thought we had-

**Dave** (3:10)
This wasn't even, you weren't expecting the news, you were expecting just Nvidia's been brought down so much, and you had a long-term thesis on Nvidia-

**Chris** (3:21)
No, I didn't, Dave.

**Dave** (3:22)
Being the backbone of AI.

**Chris** (3:24)
No, what are you talking about, Dave? That's not the conversation we had. We literally had a conversation about the diffusion rule and the trip out to Saudi next week that Trump was taking.
On the exact leak that happened an hour later, that was my thesis. But the thing is, I thought we had a full week, or at least through the weekend, I would say nine times out of 10, I would not have put the trade on right away. It's just like by pure luck that I actually put it on right away. And then that kind of like the opposite of what happened with Google yesterday, where I had been waiting to put on this Google short forever. And then some random person at Apple kind of shares his opinion for this hearing about Apple losing all their market share to AI, the search to AI and Google drops.

**Dave** (4:18)