Nvidia ( (NVDA) ) has fallen by -12.98%. Read on to learn why.
Nvidia has experienced a significant decline in its stock price, dropping by 12.98% over the past week. This downturn is largely attributed to the new tariffs announced by President Donald Trump on Liberation Day, which have sparked investor concerns about their impact on Nvidia’s business. Analysts have mixed reactions; while some maintain a positive outlook, others, like HSBC’s Frank Lee, have downgraded the stock due to the potential negative effects of these tariffs.
The tariffs, described by Wedbush Securities as an ‘economic Armageddon’ for the tech industry, could severely disrupt supply chains and increase costs. This has led to widespread market declines, with Nvidia being particularly vulnerable due to its global exposure and reliance on international trade. The tariffs could affect Nvidia’s ability to maintain its growth trajectory, especially in the AI sector, which is a key area of focus for the company.
Despite the current challenges, Nvidia’s long-term prospects remain strong, with analysts generally maintaining a bullish stance on the stock. The company’s involvement in AI and its strategic investments in startups like Runway AI highlight its commitment to innovation and growth. However, in the short term, the market volatility and potential for further tariff-related disruptions suggest caution for investors considering entering or expanding their positions in Nvidia.