Nvidia Stock Plunges Amid Trade Tensions and Market Uncertainty

It was a bad day for Nvidia

Nvidia (NVDA-7.00%) fell with other Magnificent 7 stocks on Thursday as the market reacted to new tariffs -- but the company also may've slipped because a major bank downgraded it for unrelated reasons. The chipmaker's shares were down 6.6% during pre-market trading on Thursday morning, less than a day after President Donald Trump announced reciprocal tariffs against U.S. trade partners. At the market open Thursday, Nvidia's shares were down 4.9% -- and then fell an additional 1.3% during mid-day trading. The company ended the day down 7.8% at the market close. However, Altimeter Capital chief executive Brad Gerstner told CNBC that he expects Nvidia to fair well amid the Trump administration's new tariffs. "The growth and the demand for GPUs is off the charts," Gerstner said during an appearance on "Fast Money Halftime Report." He added that semiconductors are exempted from the tariffs -- a "wise exception" -- because of the global AI race. Meanwhile, HSBC (HSBC-7.91%) analyst Frank Lee downgraded his rating for the company's stock from "buy" to "hold" on Thursday, citing concerns over Nvidia's ability to continue its strong growth. Lee said Nvidia had previously had strong pricing power due to its dominance of the market for graphics processing units, or GPUs, which are essential to powering generative artificial intelligence models, according to MarketWatch (NWSA-3.16%). However, that pricing power could have less of an impact in the future, as the company hasn't raised average selling prices. It "is likely to cap earnings upside momentum," Lee reportedly said in the note. He also noted that Nvidia's earnings and guidance beats in the last three quarters have been shrinking, due to "increasing market focus on Nvidia's earnings as well ongoing uncertainty over its Blackwell supply chain ramp-up."

Nvidia stock plunges amid U.S.-China trade war escalation: Is this just a short-term dip or the start of a bearish trend? What investors should know and how to prepare

Nvidia stock plunged nearly 5% in premarket trading Friday, hitting its lowest point since early August. This sharp decline comes as renewed U.S.-China trade tensions rattle global markets. With China retaliating against President Donald Trump's latest tariff hike, fears of a deepening trade war are fueling a broad sell-off -- particularly in the tech sector where Nvidia is a major player. The mood on Wall Street is tense. Investors are digesting not only the tariffs but also anticipating key economic updates, including the March jobs report and a speech from Federal Reserve Chair Jerome Powell. Uncertainty is running high, and Nvidia, along with other tech giants, is taking a heavy hit. This isn't just about politics -- it's about profits, too. Nvidia, a global leader in AI chips and graphics processing units, relies on international supply chains and overseas demand, especially from China. As trade barriers rise, so does the risk to Nvidia's bottom line. President Trump's 34% tariff hike on Chinese goods was met with an equal response from Beijing. This tit-for-tat move is putting pressure on companies like Nvidia, Apple, and Tesla. The tech-heavy Nasdaq index has already lost significant ground this week, and Nvidia's slide is part of a broader correction that could deepen if tensions escalate. This is the big question for investors. Nvidia's fundamentals are strong. It continues to lead in areas like AI innovation, cloud computing, and gaming hardware. But when macroeconomic fears take center stage, even the best-performing companies get caught in the storm. Technically, Nvidia is now well below its 200-day moving average, which can be a bearish signal. Yet for long-term believers in Nvidia's growth story, this pullback might represent a chance to buy at a lower valuation. It all depends on your investment timeline and tolerance for short-term volatility. If you're holding Nvidia shares, now is a good time to focus on the long-term potential. The company is still positioned at the heart of major trends like generative AI, data center growth, and autonomous driving. That said, this period of market volatility may not be over. New buyers might be tempted by the lower price -- but it's smart to wait for signs of stability before jumping in. Watch how Nvidia responds to macroeconomic signals like Powell's upcoming speech and the labor market data. Don't forget to track technical indicators and support levels before making your next move. Despite the current drop, Nvidia is still considered one of the top-performing AI stocks in the market. Its deep involvement in artificial intelligence, machine learning, and high-performance computing keeps it at the forefront of innovation. Many analysts remain optimistic about Nvidia's future, suggesting that it could rebound quickly once the broader market regains its footing. If you're looking for AI stocks with long-term growth potential, Nvidia is still very much in the conversation -- especially if you have the patience to ride out short-term dips. Market corrections are tough, but they often separate short-term traders from long-term visionaries. Nvidia, despite the volatility, remains a strong contender in the future of tech. If you believe in AI, data, and the digital world to come, this may just be a rough patch on a longer journey. As always, do your research, follow market trends, and make sure your portfolio reflects your financial goals. Nvidia isn't going anywhere -- but your investment strategy should still move with the times. Why is Nvidia stock dropping so fast? Because of rising trade war tensions between the U.S. and China, hurting tech stocks like Nvidia. Should I sell my Nvidia shares now? Not necessarily -- it depends on your long-term goals and risk tolerance.

EXCLUSIVE: Nvidia May Be The Face Of AI But The Valuation Story Is Getting Complicated, Says Expert - NVIDIA (NASDAQ:NVDA)

Nvidia Corp NVDA has become the ultimate AI bellwether -- but that status is coming under pressure. After a blistering multi-year run, shares are now down nearly 29% year to date and 8.7% over the past month. Mounting concerns around capital expenditures, valuation, and geopolitical risks create uncertainty for Nvidia stock investors. "Regarding Nvidia, it is certainly a bellwether within the semiconductor space and AI revolution," said a Direxion's Managing Director Ed Egilinsky said in an exclusive interview with Benzinga. "However, with the Deepseek news last month, and the negative impact it can have on overall capex spending, has led many to be concerned whether its current growth rate is sustainable." Read Also: Nvidia, Applied Materials Back Digital Engineering Startup In $115M Round Nvidia Stock Technicals Turns Bearish Chart created using Benzinga Pro That sustainability question is colliding with bearish technicals. Nvidia stock is now trading below all key short-term and long-term simple moving averages (SMAs) -- an unambiguous 'Bearish' signal from a technical standpoint: Eight-day SMA: $104.15 20-day SMA: $112.11 50-day SMA: $120.05 200-day SMA: $126.73 Nvidia stock price: $100.85 The MACD (moving average convergence/divergence) indicator is a negative 5.90 and the RSI (relative strength index) has dropped to 37.48, indicating that bearish momentum is building, though some traders may soon start eyeing a rebound play on oversold conditions. "In addition, the increasing competitive landscape combined with the overhang of possible further tariff and regulatory restrictions on U.S. chipmakers also could weigh on the stock," Ed added. From Market Darling To Valuation Puzzle While bulls still argue Nvidia's long-term dominance in AI makes any dip a buying opportunity, traders are split. For those trying to ride either direction of this volatility, Direxion offers tools for both camps. "For playing either side of the NVDA trade, one can look to either our Direxion Daily NVDA Bull 2X Shares NVDU or the Direxion Daily NVDA Bear 1X Shares NVDD." Whether this is a pause before the next leg higher or a sign of deeper correction, Nvidia's once one-way momentum trade now faces real complications. Read Next: Despite Tariff Turmoil, Bitcoin Outperforms 'Magnificent 7' Stocks In 2025 -- Records Smaller Losses Than Nvidia, Tesla, Apple Image: Shutterstock NVDANVIDIA Corp$101.914.37%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum50.26Growth94.83Quality97.13Value7.69Price TrendShortMediumLongOverviewNVDDDirexion Daily NVDA Bear 1X Shares$7.67-4.24%NVDUDirexion Daily NVDA Bull 2X Shares$45.308.50%Got Questions? AskWhich semiconductor companies might benefit from Nvidia's struggles?How will tariffs on U.S. chipmakers affect industry valuations?Could AI technology stocks see lower investments due to Nvidia's issues?What opportunities exist in alternative chipmakers amidst Nvidia's downturn?Are there short-selling opportunities in the semiconductor sector?How might investments in AI startups shift due to Nvidia's valuation changes?Which ETFs focused on semiconductors could be impacted by Nvidia's performance?Will investors turn to Nvidia's competitors for safer bets?What market trends could emerge from Nvidia's bearish signal?How might investor sentiment shift towards tech stocks following Nvidia's evaluation issues?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia Stock Is Down Nearly 20% YTD: What's Going On? - NVIDIA (NASDAQ:NVDA)

NVIDIA Corp NVDA shares have fallen 19.6% year to date, pressured by ongoing concerns about AI spending, trade restrictions and broader market weakness. The stock, which was one of the best-performing names in 2024, has struggled in 2025 as investors reassess growth expectations and adjust to an increasingly uncertain economic environment. What To Know: Restrictions on chip exports to China remain a major headwind for Nvidia, raising concerns about the company's ability to maintain its strong revenue growth. The company relies on China as a key market for its AI chips and any disruption in sales could have a material impact. Recent reports indicate that China is ramping up efforts to reduce its dependence on U.S. technology, which could further hurt Nvidia's long-term positioning. AI spending, which drove Nvidia's massive stock surge last year, is now under increased scrutiny. Some analysts are warning that corporations could slow their AI infrastructure investments in response to economic uncertainty. Q1 Earnings: Nvidia's latest earnings report helped accelerate the downside momentum in shares. Revenue jumped 78% year-over-year and earnings per share climbed 71%. The company guided for first-quarter revenue of $43 billion, significantly higher than the $26.04 billion reported in the same quarter last year. Despite these numbers, the stock has continued to decline as investors focus more on macroeconomic risks and shifting sentiment around AI-related spending. Market Overview: The broader semiconductor sector is also facing challenges. Advanced Micro Devices Inc. AMD is down 14.9% year-to-date, Broadcom Inc. AVGO has fallen 28% and Marvell Technology Inc. MRVL is down 44.5%. Nvidia's premium valuation has become less of a talking point as market conditions shift. The stock currently trades with a forward price-to-earnings ratio of approximately 24.5, which remains above some of its peers, but is down significantly from the peak. U.S. President Donald Trump is set to announce reciprocal tariffs on several countries at 4 p.m. ET. The Trump administration has said the tariffs could target specific sectors. NVDA Price Action: Nvidia shares were down 0.52% at $109.57 at the time of publication Wednesday, according to Benzinga Pro. Read Next: Wall Street Rebounds Ahead Of Tariff Announcement, Small Caps Rally, Bitcoin Hits $87,000: What's Driving Markets Wednesday? Photo: Shutterstock. NVDANVIDIA Corp$109.22-0.84%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum78.48Growth94.90Quality97.02Value7.34Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$102.48-0.29%AVGOBroadcom Inc$170.140.96%MRVLMarvell Technology Inc$62.740.12%Market News and Data brought to you by Benzinga APIs

Nvidia Slips Into Bearish Trend As HSBC Downgrades AI Giant - NVIDIA (NASDAQ:NVDA)

Feel unsure about the market's next move? Copy trade alerts from Matt Maley -- a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now. Nvidia Corp NVDA is no longer riding the AI euphoria wave. The semiconductor giant has slipped into a strongly bearish trend, with its stock price sinking 26.4% year-to-date and trading well below key moving averages. Investors who once saw Nvidia as untouchable are now watching as selling pressure mounts and analyst sentiment cools. Nvidia Stock Chart: Bearish Signals Everywhere Chart created using Benzinga Pro Nvidia's stock chart is flashing warning signs. The stock trades at $96.97, trailing below its eight-day ($107.82), 20-day ($113.117), 50-day ($121.36) and 200-day ($127.08) simple moving averages. The Moving Average Convergence Divergence (MACD) sits at a negative 5.10, reinforcing the bearish signal, while the Relative Strength Index (RSI) hovers at 30.03 - is dangerously close to oversold territory. Read Also: As Nvidia, Apple And Other Mag 7 Stocks Wipe Out Over $1 Trillion In Investor Wealth On Thursday, Top Analyst Warns Of 'Economic Armageddon' For Tech Sector If Current Tariffs Remain HSBC Pulls The Plug On NVDA's Upside HSBC isn't buying into the Nvidia hype, at least for now. The firm downgraded Nvidia stock from bullish to neutral, slashing its price target from $175 to $120, reported Investing. While Nvidia's AI-driven revenue growth remains strong, HSBC sees limited near-term upside. Slower GPU pricing growth and a transition phase ahead of Nvidia's next-gen Vera Rubin platform could weigh on momentum. What's Next For Nvidia? With NVDA stock under pressure, investors are wondering if a turnaround is on the horizon. AI, robotics and autonomous vehicles remain long-term catalysts, but HSBC warns that meaningful revenue from these sectors may take time. For now, Nvidia bulls might need to buckle up -- this ride could get bumpier before it gets better. Read Next: Elon Musk, Mark Zuckerberg And Jensen Huang See $34 Billion Wiped Out In A Single Day: Here's How Much Other 'Magnificent 7' Billionaires Lost After Trump's Liberation Day Photo: Shutterstock NVDANVIDIA Corp$97.81-3.92%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum66.94Growth94.86Quality97.08Value7.36Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Tech Stocks Take the Tariff Tumble. Time to Buy the Dip on Nvidia? | The Motley Fool

Stocks across industries have plummeted in recent days on concerns that President Donald Trump's tariffs on imports will eat into their profits. The U.S. just launched a plan to impose duties on most imports from around the world, with tariff levels differing from country to country. However, the stocks that have been hit most heavily by the news are those in the technology industry. That's because these companies' cost models involve importing parts and even finished goods from abroad, and levies on these imports will add to their expenses. As a result, some of last year's stock market stars have found themselves on many investors' "sell" lists instead of on "buy" lists. A perfect example is Nvidia (NVDA 3.38%), a company that, just a few months ago, investors dreamed of buying for a bargain price. Nvidia has built a dominant position in one of the highest-growth markets -- artificial intelligence (AI) -- and turned that into explosive revenue growth. Due to the turnaround in market sentiment regarding tech players today, Nvidia has reached those bargain levels of investors' dreams. Is now the time to buy the dip on this top AI stock? First, here's a quick note on Nvidia's path so far. The company sells the world's most powerful graphics processing units (GPUs), or chips that power key AI tasks, plus a wide range of AI products and services. Nvidia also has a solid business selling chips to the gaming industry. All of this has helped the tech giant grow revenue in the double and triple digits to record levels -- it reached $130 billion in the latest full year. What has drawn investors to Nvidia is its No. 1 position in the AI chip market and evidence that the AI market boom has much further to go. For example, tech leaders still are in the infrastructure growth stages and are pouring billions of dollars into AI. Meta Platforms said it will spend as much as $65 billion this year, and the overall AI market is set to soar past $1 trillion later this decade, according to analyst forecasts. Now I'll consider the news that's been weighing on Nvidia (and the entire tech industry). As mentioned, Trump has imposed import tariffs on countries worldwide. This could be a negative for those countries as it may discourage U.S companies from importing goods and, instead, develop their products at home. But in the case of tech, their cost structures depend on production in certain countries that offer companies lower cost and the expertise and infrastructure needed for certain tech products. Though Nvidia is a customer of Taiwan Semiconductor Manufacturing's newish Arizona plant, most manufacturing for Nvidia is done in Taiwan. TSMC, which has been heavily investing in its U.S. presence, aims to produce Nvidia's Blackwell chip in Arizona but still must send the product to Taiwan for packaging. The U.S. facility doesn't have the capacity necessary to do the complete job. All of this means Nvidia still heavily imports from Taiwan and now faces the 32% tariff the U.S. has imposed on that country. If Nvidia doesn't find a way to compensate by trimming costs elsewhere, and the U.S. maintains the current tariff level, this extra expense clearly will impact the company's earnings. Of course, other U.S. tech players are in the same boat -- this headwind isn't exclusive to Nvidia. Even after recent share-price declines, should you buy Nvidia stock against this backdrop? At times like these, it's particularly important to look at the situation through a long-term lens. But yes, if the tariff situation remains unchanged, it will hurt Nvidia to a certain degree. It's important to note that Nvidia aims to bring more production into the U.S. and may be working on other ways of minimizing negative impacts. Chief Executive Officer Jensen Huang has shown his ability to be proactive over time, staying ahead of competitors and forging ahead into new high-growth areas like AI. He's also handled crises, like export controls on technology to China. He led the development of a new chip for that market to respect export-control guidelines. All of this means there's reason to be confident about Nvidia's ability to manage the current crisis and grow earnings over the long term, even if the company experiences pressure in the near term. Meanwhile, the stock is trading for 20x forward earnings estimates, down from 50x earlier this year. At that price, it looks like an absolute steal, considering all of the positive points I've just mentioned -- even against the tariff backdrop. Amid the tech sell-off, there's a major opportunity, and that's the chance to buy Nvidia right now on the dip and hold on for the long term.

Is Nvidia Stock Severely Affected By President Trump's Tariffs? | The Motley Fool

Nvidia (NVDA 3.38%) has been one of the hottest stocks in the market since 2023 but has cooled alongside all of the other growth stocks during the latest sell-off. Nvidia has been a top stock because of its involvement in the artificial intelligence (AI) race since its products power much of the training and inference for that technology. However, the stock recently was now down more than 30% from its all-time high, due to the impact of President Donald Trump's tariff announcement. But is Nvidia truly affected by this? Or is it just guilt by association? Nvidia's graphics processing units (GPUs) and the other components that support them have seen massive growth alongside AI demand over the past few years. In just two years, revenue climbed from under $30 billion to $130 billion, a total gain that no company has matched. But with these new tariffs, there are fears that Nvidia's business could be significantly harmed. First, Nvidia doesn't make any of the chips that go into its GPUs. It sources a significant amount of them from Taiwan Semiconductor Manufacturing (TSM -0.68%), which has nearly all of its production capabilities overseas. Taiwan was recently hit with a 32% tariff, which would cause the price of chips that go into the company's GPUs to rise significantly. However, there's one important caveat: Semiconductors are exempt from this tariff rate. This means that the price Nvidia is paying for its chips today is the same as it paid last week, which eases some fears with its stock. Next, let's move to the company's customer base. Nvidia's biggest clients are the AI hyperscalers, which are big tech companies that are sparing no expense in building their AI capacity. Many of Nvidia's largest clients have said that they will have record capital expenditures this year, mainly due to data center buildouts to run their own AI workloads as well as others through cloud computing offerings. Investors will hear from these hyperscalers as they report first-quarter results in late April and early May, but my guess is that these plans have largely remained unchanged. It's too important to capture the AI market in its infancy, and any decrease in spending will be an opportunity for competitors to seize what they have given up. Most of these companies have unbelievable cash flows, and if everything gets a bit more expensive, they can eat the costs. As a result, there may be a slight decrease in data center buildouts this year, but likely not enough to really affect Nvidia. I think this makes Nvidia OK from this standpoint, too. With the company's supply chain and customer base looking healthy, is it time to buy shares at a bargain-bin valuation? Following the sell-off, Nvidia's stock now trades at a dirt cheap level. The stock now trades at 20.9 times forward earnings, which is close to the S&P 500's (^GSPC -0.23%) current trading range of 20. This is an unbelievable price for one of the fastest-growing companies on the market. It will likely take positive language from the AI hyperscalers in their first-quarter results to turn Nvidia's stock around. But until that turnaround occurs, I think it's a great stock to buy right now.

Nvidia Stock Is Marching Higher Again. Is It Time to Buy? | The Motley Fool

Markets remain volatile as investors and traders continue to digest the potential effects of a global trade war as nations respond to President Trump's tariff rollout. The stock of semiconductor giant Nvidia (NVDA 14.68%) has begun to rebound, though. Shares were higher again today by as much as 5%. While the stock pared that gain, Nvidia shares have still been on a positive trend since last Friday. Uncertainty around the tariff situation remains, but Nvidia should still be a long-term winner despite the short-term market turbulence. Even with this week's rebound, Nvidia stock is still lower by more than 25% year to date. Some large investors seem to think it has bottomed. Portfolio manager and widely followed investor Cathie Wood added over 340,000 shares on Monday and Tuesday, reports Barron's. There are several concrete reasons to follow Wood into the trade. Nvidia remains the artificial intelligence (AI) hardware leader. Even if large tech companies throttle back current capital spending plans for data center capacity, Nvidia will retain a meaningful amount of business. Revenue growth may slow, but expansion is still in the cards. Nvidia is also now trading at a more reasonable valuation than late last year. A price-to-earnings (P/E) ratio below 22 based on this year's estimated earnings is relatively cheap for this tech leader. That also gives the stock some buffer if estimates have to be cut. Nvidia's business is about more than just AI chips. Robotics, gaming, and self-driving vehicle software contribute to its sales. Long-term investors can benefit from the tariff-induced market volatility. Nvidia is one name that can bring long-term gains with enough patience. All this means now is a good time for investors to follow Cathie Wood's lead and buy Nvidia stock.

Why Nvidia Stock Lost 13% in March | The Motley Fool

Shares of Nvidia (NVDA -0.46%) were among the losers last month as the artificial intelligence (AI) chip leader pulled back along with the broad market in March. There wasn't any major news that weighed on Nvidia, but signs that demand for AI infrastructure may be slowing seemed to drive the stock lower, as did general fears about a slowdown in the economy driven by weakening consumer sentiment, the uncertainty around tariffs, and declining economic growth forecasts. Toward the end of the month, the weak response to the debut of CoreWeave, a generative AI-focused cloud computing platform and a partner of Nvidia, also seemed to reflect waning investor enthusiasm for AI stocks. The semiconductor sector is cyclical and, given its soaring growth over the last two years, investors seem to be wary about the impact that a recession would have on Nvidia. When March came to a close, the stock finished down 13%, according to S&P Global Market Intelligence. As you can see from the chart below, Nvidia was volatile last month, but it generally trended with the Nasdaq Composite, fluctuating according to macro-level news. Nvidia came into March reporting strong results at the end of February for the fourth quarter, but the stock pulled back on the news, a sign that investors may be moving on from the AI chip leader, and that trend continued into March. The biggest news out of the company was its annual GTC conference, held during the third week of the month, but even CEO Jensen Huang's closely watched keynote address, which touted AI infrastructure spending across the industry reaching $1 trillion in 2028 and upcoming advances in the company's product line, failed to lift the stock. Shares of Nvidia fell 3.5% on March 18, the day of the keynote. Toward the end of the month, the stock slumped as President Donald Trump announced auto tariffs and as the April 2 "Liberation Day" of reciprocal tariffs approached. Additionally, Nvidia seemed to jump in to help prop up CoreWeave's IPO, buying $250 million in shares at $40 to help boost investor confidence in the AI platform. Nvidia's pullback last month was driven by the shifting macroeconomic environment, rather than any change in the company's fundamentals so it shouldn't change any investing thesis around the stock. In fact, the stock looks attractively priced now, trading at a forward P/E of just 25. That's a great price for a stock that looks set to continue driving the AI revolution.