Nvidia stock rose 3% on Monday. News that tariffs on chips coming into the U.S. could be off the table, at least in the short term, was helping to provide a boost to shares.

Advanced Micro Devices stock also gained 7%.

Apart from the broader market optimism, investors might be welcoming the apparent delay to any threat of imports of semiconductors from Taiwan, where Nvidia's most advanced chips are manufactured.

Sector-specific tariffs -- including on chips -- are now unlikely to be announced on April 2, the day the White House is planning to unveil reciprocal tariff actions, The Wall Street Journal reported on Sunday, citing an administration official.

Despite a $100 billion U.S. investment pledge from Taiwan Semiconductor Manufacturing, the semiconductor manufacturer for Nvidia, President Donald Trump has several times reiterated his intention to place tariffs on chip imports.

Meanwhile, there could be further good news in evidence that Washington is prioritizing pressure on fellow governments to deal with concerns that advanced chips are reaching China despite U.S. sanctions, rather than expanding export restrictions.

Malaysia's trade minister said in an interview with the Financial Times that the Trump administration is demanding the country monitor the movement of Nvidia chips over concerns they could end up in China.

On Monday, Melius Research analyst Ben Reitzes said Nvidia shares have become less risky given recent developments, citing the stock's attractive valuation at 26 times 2025 estimated earnings per share. Nvidia is "now arguably defensive," he wrote. "At GTC, you just didn't get the sense you were speaking to a company worried about demand."