Nvidia shares closed at $201.68 on Friday, continuing an eleven-session winning streak that has become one of the more striking features of a broader market recovery, with investors reassessing the chip giant’s valuation as the prospect of Federal Reserve rate cuts edges back onto the agenda following the easing of Hormuz tensions.
The stock has reclaimed significant ground after a difficult start to 2026, moving from lows in the mid-nineties during the peak of the Iran war panic to a position now within reach of its all-time highs, fuelled by continued enthusiasm around the AI capital expenditure cycle that remains the dominant investment narrative across the technology sector.
Nvidia’s most recent quarterly results, which included over $215 billion in full-year fiscal 2026 revenue and a $78 billion guide for the current quarter, provided the fundamental underpinning that analysts point to when defending the stock at what might otherwise appear to be a demanding valuation.
The geopolitical angle has added an additional dimension to the thesis, with a potential decline in oil prices following any Hormuz reopening expected to ease inflation pressures and create the conditions under which the Federal Reserve might feel comfortable beginning a rate-cutting cycle that would be structurally beneficial to long-duration growth stocks of exactly the type Nvidia represents.
Tesla, meanwhile, closed at $400.62 on Friday, up three percent on the session ahead of its first-quarter 2026 earnings call on April 22, with investors weighing a core automotive Business that has been decelerating against an accelerating AI and robotics narrative centred on the Cybercab robotaxi programme.
The contrast between the two positions encapsulates a broader tension in how markets are currently pricing AI exposure, with Nvidia offering what many analysts describe as compound growth at a reasonable multiple, and Tesla carrying a premium that requires execution on products and timelines that have not yet been validated at commercial scale.
Ark Investment Management’s projection of a Cybercab generating $756 billion in annual revenue for Tesla by 2029 represents the bull case, but it rests on a sequence of regulatory approvals, production ramp milestones and competitive dynamics that remain highly uncertain, particularly with Nvidia having publicly committed to developing its own autonomous driving stack for sale to third-party manufacturers.
The broader technology rally has also been supported by data showing the Magnificent Seven ETF rising more than fourteen percent in April alone, on track for its largest monthly gain on record since its 2023 inception, suggesting that institutional positioning has shifted materially in favour of the largest-cap technology stocks over the past four weeks.
Markets will next look to Nvidia’s own quarterly print on May 20 as a key catalyst for the next leg of the trade, with analysts expecting further confirmation that demand for AI infrastructure remains robust and that any margin concerns tied to geopolitical supply chain disruptions have been manageable.