Nvidia Leads Chip Stocks Higher Ahead of Key Inflation Data

CNBC reported Wednesday that Nvidia shares surged more than 2% in premarket trading, pulling chip stocks broadly higher as investors positioned ahead of a closely watched inflation release.

S&P 500 futures edged up 0.2% in early trade. Nasdaq-100 futures advanced 0.8%. The Dow Jones Industrial Average, however, pointed to a softer open, with futures down roughly 115 points. AMD added 2% in premarket activity, while Micron jumped nearly 6%. The VanEck Semiconductor ETF climbed 2.2%.

Jensen Huang’s China Appearance Sparks the Move

The catalyst behind the chip stocks surge was the surprise appearance of Nvidia CEO Jensen Huang alongside President Donald Trump on a diplomatic trip to meet Chinese President Xi Jinping. Analysts at Vital Knowledge noted his last-minute addition had revived investor enthusiasm in the sector. The firm cautioned, however, that the move reflected the sector’s ongoing irrational momentum rather than any fundamental shift. Still, markets responded decisively to the optics.

Producers Price Index Takes Center Stage

Traders will receive another read on U.S. inflation Wednesday morning when the April producer price index lands at 8:30 a.m. Eastern. Economists surveyed by Dow Jones forecast a headline monthly gain of 0.5%, matching March’s pace. The core measure, which strips out food and energy, is expected to rise 0.4%. Tuesday’s consumer price index came in hotter than expected, briefly dragging the S&P 500 and Nasdaq away from all-time highs reached in recent sessions.

Also Read: Fed Holds Rates Steady as Inflation Uncertainty Persists

Background: Semiconductors Have Led the 2026 Rally

The broader AI-driven rally has made semiconductors the market’s standout performers this year. Enthusiasm around artificial intelligence infrastructure spending has lifted the sector repeatedly back toward record territory. Even Tuesday’s brief pullback following the CPI print did not materially disrupt the trend. Analysts at Citi Wealth argue the AI investment cycle is broadening beyond pure-play tech names. The bank’s head of portfolio construction Olaolu Aganga told CNBC the expansion of AI capital expenditure into energy infrastructure and grid buildout opens additional opportunities for investors who feel they have already missed the primary tech wave.

Also Read: AI Infrastructure Spending Drives New Capex Supercycle

Asian Markets Close Mixed Amid Geopolitical Watch

Asia-Pacific markets ended Wednesday’s session divided. Japan’s Nikkei 225 gained 0.84%, while South Korea’s Kospi reversed early losses to close up 2.63%. Australia’s benchmark slipped 0.46%. Oil prices retreated, with West Texas Intermediate falling below $102 per barrel. Attention across the region remained fixed on the Trump-Xi summit and preliminary economic talks held in South Korea between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.

Read Next: What the Trump-Xi Summit Could Mean for Global Trade