Nvidia’s (NVDA) stock price is down at the time of writing as the chipmaker extends last week’s declines. This downturn was triggered by investors reacting to President Trump’s newly announced tariffs. Nvidia’s stock was already struggling after reports emerged that the Trump administration might tighten rules on exporting Nvidia chips to China.
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Other major semiconductor companies, including Qualcomm (QCOM), Texas Instruments (TXN), and Advanced Micro Devices (AMD), also saw their stock prices decline on Monday. While the tariffs may have a limited direct impact on the semiconductor industry, analysts warn that indirect effects and potential escalation could be a concern.
According to five-star Bernstein analyst Stacy Rasgon, the U.S. imports a significant amount of electronics and machinery containing semiconductors from China, Mexico, and Canada. For example, the U.S. imported $39 billion in data processing equipment, including PCs and servers, from China in 2023, and $28 billion from Mexico. As a result, Companies like Foxconn, which is building a massive AI server assembly site in Mexico, will need to adapt quickly to the changing tariff landscape.
Is NVDA a Good Stock to Buy?
Turning to Wall Street, analysts remain bullish on NVDA stock, with a Strong Buy consensus rating based on 37 Buys and three Holds assigned in the past three months. After a 69% rally in its share price over the past year, the average NVDA price target of $179.81 per share implies an upside potential of 53.7% from current levels.
