While there's still significant risk on the geopolitical front, allowing the sale of capable AI processors to China suggests the potential for a significant improvement in U.S. trade relations. If so, AMD stock could continue to see bullish business-specific catalysts in addition to valuation tailwinds for the broader market.

The Dow Jones index wavered Tuesday after the CPI inflation report. Nvidia stock surged on AI chip sales to China.

I'm talking about Nvidia  (NVDA) , of course, and the question is: Can it help power the S&P 500 to another record high?The answer is yes. In premarket trading shares of the AI-chip giant are trading up nearly 1%.

What Happened? Shares of shoe and apparel company Steven Madden (NASDAQ:SHOO) jumped 5.4% in the afternoon session after analysts at Citigroup moved the stock to "Buy" from "Neutral" and raised their price target.

The Dow Jones index rose Thursday on surprise jobless claims and retail sales. Nvidia chipmaker TSMC rose on earnings.

AMD shares climbed again Wednesday amid optimism about the company's plans to restart exports of its MI308 chips to China. Monitor these key chart levels.

Currently, the stocks amount to about $2 trillion in market value. But the leading investment bank has predicted an average growth rate of 13% annually over the next two years for the Prom 10 – hinting that there is ample headroom for China's tech leaders to move into similarly dominant positions as their U.S. counterparts.

Nvidia said it has filed applications to resume selling H20 GPUs in China and has received assurances that licenses will be granted.

For strategists at JPMorgan Chase & Co. and Goldman Sachs Group Inc. as well as money managers in Hong Kong and Singapore, an opaque term has suddenly emerged as the catchphrase for deciphering Chinese policy intentions and navigating the stock market.

Needham is the latest Wall Street giant to crank up Nvidia’s price target, and the jump is big. The firm bumped its price target to $200 from $160, while maintaining a buy rating, following Nvidia’s confirmation that it’s gearing up to resume H20 chip sales to China.