Nvidia Corporation's stock is oversold due to market panic from Trump's trade tariffs, but semiconductors are currently exempt, reducing immediate impact. Nvidia's key supplier TSMC is expanding US-based facilities, mitigating future tariff risks and strengthening US manufacturing capabilities. The AI revolution will drive Nvidia's growth, with significant Data Center CAPEX expected, ensuring long-term demand despite short-term trade uncertainties.
Nvidia shares are down from recent all-time highs, courtesy (in large part) of the trade conflict and tariffs. It seems even the massive artificial intelligence megatrend is no match for Trump's trade policies, at least for now (things may still get much worse). This report reviews the US trade imbalance and the AI megatrend through the lens of Nvidia's massive business, current valuation, and risks.
NVIDIA NASDAQ: NVDA share price reached a 40% decline in early April and may fall further. The broad market is amid a massive, tariff-induced reset that will take months to play out and have long-lasting repercussions.
Zacks.com users have recently been watching Nvidia (NVDA) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
There is one name synonymous with the artificial intelligence (AI) revolution in the computer and technology sector. NVIDIA Corp. NASDAQ: NVDA commands over 92% of the graphic processing unit (GPU) market, making it the leading company benefiting from the surge in AI infrastructure demand.
Nvidia was falling as investors expect chips to eventually be targeted for tariffs.
Daniel Niles, founder and portfolio manager of Niles Investment Management, looks at opportunities as he weighs in on the adverse market reaction to U.S. president Donald Trump's tariff announcements.
The recent selloff has pushed Nvidia's valuation back to levels we haven't seen since 2020, when barely anyone knew about its data center segment. Nvidia's fundamentals remain intact as the stock tanked with the broader market. I believe this dislocation presents a strong buying opportunity. Risks include a possible weakening of GPU pricing power, which could weigh on future earnings and compress margins.
Some of the best companies in the world have gotten caught up in the recent market sell-off, including Nvidia (NVDA -7.03%). The stock is trading down more than 25% off its highs set earlier this year as of this writing.
Nvidia (NVDA -7.03%) has been unstoppable. Its chips have been the preferred choice for video gamers for years, and now they are prized by the world's largest data centers.
Nvidia's 25% sell-off stems from tariff fears, but semiconductors remain exempt; even a 25% COGS tariff only trims gross margin by ~2.8–3% globally. TSMC's U.S. fabs, Samsung's Texas expansion, and Intel partnership offer Nvidia robust geographic diversification for leading-edge chip supply. AI infrastructure demand remains secular; sentiment-driven de-rating offers asymmetric upside as Nvidia sustains ~65–70% margins and EPS resilience.
The tech sell-off of 2025 has created several buying opportunities. Last year, the valuations for countless tech businesses went through the roof, making it difficult to bargain hunt.