Nvidia Stock Drops 3.92% Amid Pricing Concerns, Tariff Fears

On April 4, 2025, Nvidia's stock experienced a 3.92% drop in pre-market trading, reflecting the market's response to recent developments and investor sentiment.

Investors have expressed concerns over Nvidia's pricing power for its AI GPUs, with HSBC downgrading the stock from "buy" to "hold" and lowering its price target from $175 to $120. This move comes amid doubts about the sustained demand for Nvidia's GPUs, particularly after the DeepSeek sell-off in January, which led to a significant drop in the company's market value.

Nvidia's CEO, Jensen Huang, has defended the company's GPU pricing, citing the high manufacturing costs and technological advantages. However, the recent tariffs imposed by the Trump administration have added to the market's uncertainty, further pressuring Nvidia's stock. The company is reportedly working with partners like TSMC and Foxconn to manufacture GPUs domestically and is lobbying the U.S. government to exempt its AI GPUs from the latest tariff regulations.