nvidia faces 14% stock drop amid new ai platform debut

2025-04-07 nvidia

New York, Monday, 7 April 2025.
nvidia’s stock took a 14% hit this week. This happened despite the launch of its new dgx superpod and ai data platform. Global tariff concerns and a general nasdaq downturn are to blame. The trump administration is considering semiconductor tax policies. This could further impact nvidia and the ai infrastructure sector. Analysts are wary that these policies could disrupt ai data center supply chains.

Tariff concerns and market impact

The broader market downturn, spurred by tariff anxieties, significantly contributed to nvidia’s stock decline [1]. These concerns have triggered a sell-off in technology stocks [2]. The nasdaq’s move into bear market territory reflects this widespread apprehension [1]. Analysts predict that uncertain tariff policies could disrupt the infrastructure supply chains of ai data centers [2]. This disruption may force tech companies to reallocate budgets. Potential budget cuts could reduce ai-related expenditures, posing challenges to the united states’ leadership in artificial intelligence [2].

Analyst perspectives on capital expenditure

Hsbc warned of a potential slowdown in cloud computing company spending next year [2]. The bank also lowered its target stock price for nvidia [2]. Everest Group suggested that major players in ai infrastructure and consumer tech might redistribute short-term spending [2]. Companies may shift from expansion to procurement hedging or relocation [2]. D.A. Davidson analyst Gil Luria noted that data center equipment costs will likely increase [2]. He also stated that companies like microsoft and amazon are already exploring more balanced approaches to data center construction [2].

Nvidia’s stock fluctuations can influence global technology stocks [3]. A decline in nvidia’s stock price could negatively impact a-share related industries [3]. These industries include companies in the semiconductor and ai sectors [3]. Investor sentiment and market confidence could also suffer, potentially causing short-term adjustments in the a-share market [3]. The long-term performance of a-shares depends more on china’s economic fundamentals and technological advancements [3]. Analysts observed the a-share market’s response to nvidia’s performance as of april 4, 2025 [3].

Semiconductor sector reaction

Semiconductor company stocks are trading lower in sympathy with nvidia [4]. This is due to a possible selloff after nvidia reported its q4 financial results [4]. Nvidia’s closing stock price on april 5, 2025, was $94.31, a 7.358 or 7.36% decrease [7]. The stock opened at $98.94, reached a high of $100.12, and a low of $92.11 [7]. The total trading volume was 532,273,810 [7]. Nvidia’s market capitalization stands at $2.301 trillion [7].

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