Nvidia stock (NVDA) has further to fall, claims a leading analyst, with fears that it could hit $100 in a matter of hours.
Tariffs Take Their Toll
The chipmaker’s stock was down nearly 2% in early trading and is now off nearly 15% in the last five days and 16% year to date. The selloff has been driven by U.S. President Donald Trump’s placing of tariffs on imports from Canada and Mexico, which went into effect today.
Some parts of Nvidia’s chips and components are manufactured in Mexico. Reciprocal tariffs from those two countries and from China, on which Trump has also placed tariffs, have knocked the confidence of U.S. markets and previously supercharged tech stocks. In addition, the company is being investigated over server exports to Singapore. The slide has come despite Nvidia posting strong financials last month and continued demand for its chips to power the AI revolution around the globe.
Could Be Further to Fall
However, Jordan Klein, TMT sector specialist at Mizuho Group, said there could be further for the stock to fall. “Nvidia will probably test $100 as that is only another 10 to 12% lower and could happen in a single day at this rate,” he wrote in a note today. “If Tesla (TSLA) can drop 40% in 8 weeks after a 124% rally, why can’t Nvidia? It feels like Nvidia is getting sold primarily because it is still very owned.”
Is NVDA a Good Stock to Buy Now?
On TipRanks, NVDA has a Strong Buy consensus based on 38 Buy and 3 Hold ratings. Its highest price target is $220. NVDA stock’s consensus price target is $178.66 implying an 59.62% upside.
