Nvidia Edges Lower Despite Trump Tariff Report Surprise; Is Nvidia A Buy Now?

Nvidia (NASDAQ: NVDA) shares edged lower on Friday, despite a surprise in the Trump administration's tariff report. The stock initially rose on the news, but investors seemed to take a step back, questioning the long-term impact of the tariffs on Nvidia's supply chain and earnings. The question on many minds now is: Is Nvidia a buy at current levels?

The Trump administration's tariff report, released on Thursday, included a surprise for Nvidia investors. The report indicated that the administration would not impose additional tariffs on Chinese semiconductors, as previously expected. This news initially sent Nvidia's stock price higher, as investors breathed a sigh of relief. However, the stock price later reversed course and edged lower, suggesting that investors were not entirely convinced that the tariff reprieve would be beneficial for Nvidia in the long run.

The concern for Nvidia investors is that the tariffs, while not directly targeting Chinese semiconductors, could still impact Nvidia's supply chain and production costs. Trump's tariffs on imported components could lead to increased costs for Nvidia, as the company relies heavily on global supply chains for its components and manufacturing. Additionally, potential retaliation from China could further disrupt Nvidia's operations in the country or other regions where it has a presence.

Analysts and experts have weighed in on the potential impact of Trump's tariffs on Nvidia's stock price and earnings. Dan Ives, an analyst with Wedbush Securities, believes that the tariffs could have a significant impact on Nvidia's supply chain and production costs, potentially leading to increased component costs, disruptions in the supply chain, and retaliation from China. Ives named Nvidia as one of the biggest likely losers of the Trump presidency, along with Tesla Motors (NASDAQ: TSLA) and Apple (NASDAQ: AAPL).



Despite the concerns, some analysts remain bullish on Nvidia's long-term prospects. Hans Mosesmann, an analyst with Rosenblatt Securities, maintains his "Strong Buy" rating on Nvidia, with a price target of $220. Mosesmann believes that the age of AI is in full steam, propelling a global shift to Nvidia computing. Similarly, Cody Acree, an analyst with Benchmark, reiterates his "Strong Buy" rating on Nvidia, with a price target of $190.

However, Gil Luria, an analyst with DA Davidson, downgraded his rating on Nvidia to "Hold," with a price target of $90. Luria is concerned about the potential impact of Trump's tariffs on Nvidia's supply chain and production costs. Yik Ban Chong, an analyst with Phillip Securities, also downgraded his rating on Nvidia, from "Strong Buy" to "Buy," with a price target of $160.



In conclusion, Nvidia's stock price reacted negatively to the Trump administration's tariff report, as investors questioned the long-term impact of the tariffs on Nvidia's supply chain and earnings. While some analysts remain bullish on Nvidia's long-term prospects, others have expressed caution due to the potential impact of the tariffs. Investors should closely monitor the situation and consider the various factors at play when making investment decisions.