Nvidia stock was edging higher on Tuesday, as investment bank Jefferies added the chip maker to its list of highest-conviction picks.Shares rose 1.1% to $138.90 in early trading. The S&P 500 was up 0.

In recent times, though, against a backdrop of import tariff uncertainties and restrictions on AI chip exports to China, investors have worried about growth ahead, which has weighed on Nvidia's stock, bringing it down 29% from the start of the year to its lowest point in April.

Nvidia ( NVDA) was added after Jefferies saw upside to the AI darling's full year 2025 guidance from its Blackwell Ultra chips and strength in networking. "Ramp of Blackwell should push (gross margin %) to mid-70% throughout the year," the brokerage said.