Nvidia's Trading Volume Soars to Second Place Despite Stock Price Plunge

On April 3, 2025, Nvidia's trading volume reached 347.07 billion, marking a 43.67% increase from the previous day, placing it second in the day's market activity. However, Nvidia's stock price fell by 7.81%.

Nvidia's recent stock performance has been marked by volatility, with the company experiencing five consecutive days of losses, culminating in a 1.2% decline on Monday. This downward trend has resulted in a nearly 20% drop in the stock's value for the quarter.

The decline in Nvidia's stock price can be attributed to several factors, including the announcement of new tariffs by President Trump. These tariffs, which include a 32% levy on imports from Taiwan, where Nvidia's chips are primarily manufactured, have put significant pressure on the stock market. Although semiconductors were exempted from the initial round of tariffs, the administration has indicated that they will be addressed separately, leaving the possibility of future tariffs on chips.

Adding to the uncertainty, Nvidia received a rare rating downgrade from HSBC analyst Frank Lee, who lowered his price target from $175 to $120 and changed his rating from a buy to a hold. Lee cited increasing mismatches and inconsistencies in Nvidia's supply chain, as well as the company's struggle to raise prices on its AI chips, as reasons for the downgrade. Despite these challenges, some analysts remain optimistic about Nvidia's long-term prospects, particularly in the areas of robotics and autonomous vehicles.