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3w ago

Nvidia Stock Drops 7% Following HSBC Downgrade and Tariff Concerns

HSBC cites weakening GPU pricing power and limited near-term growth, while new U.S. tariffs raise supply chain worries despite semiconductor exemptions.

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Overview

  • Nvidia's stock fell 7% on April 3, 2025, following an HSBC downgrade and market reaction to President Trump's new tariffs.
  • HSBC downgraded Nvidia from 'Buy' to 'Hold,' cutting its price target from $175 to $120, citing weaker GPU pricing power and slowing revenue growth.
  • The bank noted no significant price increases between Nvidia's B200 and B300 GPUs, raising concerns over the company's ability to sustain premium pricing.
  • While semiconductors are exempt from the newly announced tariffs, Nvidia's reliance on Asia-Pacific foundries like TSMC highlights ongoing supply chain vulnerabilities.
  • Analysts remain divided on Nvidia's long-term prospects, balancing optimism about AI-driven GPU demand with concerns over market saturation and geopolitical risks.