Tariffs, trade policy, and the risk of recession have all contributed to market turmoil lately. That's led to a massive increase in volatility in one of the market's biggest stocks. Shares in tech giant Nvidia (NVDA 3.66%) have been rebounding sharply in recent days after a more than 20% drop over the last month.

Nvidia shares dropped to as low as $95 in early April, but have rebounded to near $110 per share as this week's trading nears a close. Today alone the stock jumped 5% after President Donald Trump soothed investor fears of a trade war between the U.S. and China. Investors may now think they've missed the boat after that rebound, but shares of the artificial intelligence (AI) leader should still have room to run.

Nvidia wants the U.S. and China to get along

President Trump and his representatives have been cooling down rhetoric around tensions with China this week. At a financial forum in Washington, D.C. on Wednesday, Treasury Secretary Scott Bessent said "there is an opportunity for a big deal here," referring to a U.S. and China trade deal.

While preparing to travel to Rome for Pope Francis' funeral today, President Trump good-naturedly told reporters he has spoken to China's President Xi "many times." That came after he said in a Time interview earlier in the week that he thought trade deals could be realized "over the next three to four weeks, and we're finished, by the way." Some of those comments may be strategic in nature, preparing for negotiations. But moving in that direction is good news for Nvidia and its shareholders.

Nvidia reports on May 28

Nvidia reported sales of $17.1 billion in China for its fiscal year ended Jan. 26, 2025. That only represented 13% of revenue. But Nvidia has close ties to Taiwan as a supplier, and any turmoil could easily expand to include Taiwan.

If business continues without major political interference, Nvidia shares could continue to rise. Watch for what it says about that when it reports its fiscal first quarter on May 28.