Nvidia, a leading name in artificial intelligence (AI) hardware, has seen its stock price drop significantly during a challenging trading session. Broader market sell offs and specific company related developments have contributed to investor concerns about the tech giant’s immediate outlook.
The U.S. administration recently announced sweeping tariffs, including a 10% levy on all imported goods set to begin on April 5, with additional reciprocal tariffs to follow on April 9. While these policies primarily target imports broadly, they have raised alarm for companies like Nvidia, which relies heavily on global supply chains. Analysts fear potential retaliatory measures from trade partners could pose additional obstacles for the semiconductor industry.
Adding to Nvidia’s challenges, HSBC downgraded the company’s stock from “buy” to “hold,” citing concerns over pricing power in its cutting-edge graphics processing units (GPUs). The firm also reduced its one-year price target from $175 to $120, reflecting concerns about future revenue growth amid a more competitive market environment. According to HSBC, supply chain inconsistencies and softer pricing for Nvidia’s advanced GPUs could limit the company’s ability to achieve significant earnings growth in the near term.
Despite these setbacks, Nvidia remains a prominent player in AI and technology innovation. While its stock faces near-term pressures, its strong market position and ongoing developments in GPU technology continue to attract attention from long-term investors.