Nvidia Faces Stock Decline and Downgrade Amid Pricing and Market Pressures

HSBC downgrades Nvidia as GPU pricing power weakens, while macroeconomic challenges and tariffs weigh on the semiconductor giant's stock.

Nvidia's stock is down 26% from its January 2025 peak, reflecting slowing growth and broader market pressures.
HSBC downgraded Nvidia's stock from 'Buy' to 'Hold' and reduced its price target to $120, citing weakening GPU pricing power and limited near-term growth potential.
President Trump's new tariffs have created uncertainty in the semiconductor market, though Nvidia's chips are exempt from these measures.
Nvidia's recent product launches, including the Blackwell B300 GPUs, have not significantly boosted average selling prices, raising concerns about profitability.
Analysts remain optimistic about Nvidia's long-term leadership in AI, with domestic manufacturing plans and innovation seen as key to future growth.