However, Nvidia just rejoined Apple ( AAPL -0.28%) and Microsoft ( MSFT 0.81%) in the $3 trillion club. Could it even become the first $4 trillion stock by 2026? What did Nvidia do to bounce back? Nothing on its own. To understand the stock's rebound, we need to first understand why it fell in the first place.

Nvidia (NVDA) leaped back into the $3 trillion club on Tuesday as its stock shot up following the announcement of a major deal with a state-backed Saudi Arabian AI company. Nvidia shares rose nearly 6% to close just under $130.

Most tech stocks are surging today after a shocking announcement from China took the market by storm this morning. Even after several strong earnings reports over the past two weeks, many prominent companies have struggled as tariffs levied by President Donald Trump sparked retaliation from trade partners,