As of April 3, 2025, NVIDIA Corporation’s (NVDA) stock price is $103.08, reflecting a decline of $7.34 (-6.65%) from the previous close.
Financial Performance:
- The Q1 FY2025 financial results showed NVIDIA delivering $26 billion in revenue and $6.12 non-GAAP diluted EPS which generated 262% higher sales and 461% more EPS than the previous quarter
- The company posted operating and net profit margins of 61.1% and 56.17% which placed it in the third position in its Semiconductors industry segment during Q4 FY2025
The recent downturn in NVIDIA’s stock can be attributed to several factors:
- U.S. Import Tariffs: During his announcement President Donald Trump established tariffs with a 32% tax rate for Taiwanese imports. Semiconductor manufacturers received an exclusion but the negative market mood led to decreases in NVIDIA stock value.
- Analyst Downgrade: NVIDA received an updated analysis from HSBC analyst Frank Lee who lowered the rating from ‘Buy’ to ‘Hold’ because of delayed price changes in Blackwell chips along with supply chain issues. He issued an updated forecast by lowering the stock value from $175 to $120.
- Market Volatility:Public stock markets showed major downturns when the tariffs were announced since the Dow Jones Industrial Average lost 1,200 points (2.8%). The market turbulence caused NVIDIA stock price to drop substantially.
Investors should monitor these developments closely, as they may influence NVIDIA’s stock performance in the near term.
NVIDIA’s stock price recently crashed due to several key factors:
1. U.S. Import Tariffs on Taiwan
- President Donald Trump announced new tariffs, including a 32% tariff on Taiwanese imports.
- Although semiconductors were technically excluded as a part of the tariffs no action was taken because markets worried about supply chain disturbances.
- NVIDIA depends almost entirely on Taiwan Semiconductor Manufacturing Company (TSMC) for its chip manufacturing yet this heavily exposes them to potential limitations from the supplier.
2. Analyst Downgrade
- Frank Lee at HSBC lowered his rating on NVIDIA stock from buy to hold because he believed Blackwell AI chips would be priced unfavorably and supply chain conditions remained unpredictable.
- He also cut the price target from $175 to $120, signaling lower growth expectations.
3. Broader Market Sell-Off
- Following the trade barriers announcement the Dow Jones Industrial Average dropped by 1,200 points (-2.8%).
- When investors shifted resources from high-risk-high-growth stock types NVIDIA along with other tech companies experienced severe downturns.
4. Profit-Taking After Massive AI Rally
- NVIDIA stock rapidly rose because of the AI surge which also made the company susceptible to substantial market fluctuations.
- Shareholders who achieved significant investment returns chose to sell their stocks to gain their money back thus accelerating the market decline.
What’s Next?
- NVIDIA’s long-term prospects in AI and GPUs remain strong.
- If tariff concerns ease and AI demand continues to grow, the stock could recover.
- However, short-term volatility is likely due to geopolitical risks and supply chain concerns.
Competition
NVIDIA leads in AI chip development as well as GPU manufacturing despite facing intense market competition from multiple firms operating within individual technology spheres.
- AMD (Advanced Micro Devices) – Competes with its MI300 AI accelerators, targeting NVIDIA’s H100 GPUs.
- The company Intel continues its development of Gaudi AI chips and Xe GPUs with the goal to compete with NVIDIA in AI and cloud computing fields.
- Through the Tensor Processing Units (TPUs) Google implemented for AI tasks the company reduces its dependency on NVIDIA products.
- Amazon (Inferentia & Trainium) – Custom AI chips for AWS, challenging NVIDIA’s cloud dominance.
2.Gaming GPUs
- AMD produces Radeon GPUs which directly challenge NVIDIA GeForce series devices used for gaming applications.
- The Intel Arc GPUs represent a modern entrant into the gaming and creative applications GPU market.
3.Self-Driving & Automotive AI
- Tesla works on Dojo Supercomputer development to produce its own chips which will replace the existing AI technology from NVIDIA within Tesla’s self-driving software.
- Qualcomm & Mobileye – Competing in automotive AI and driver-assist systems.
Major Investors in NVIDIA
NVIDIA has several institutional and retail investors, including:
- Institutional Investors (Biggest Shareholders)
- Vanguard Group (~8% ownership)
- BlackRock (~6% ownership)
- Fidelity Investments
- State Street Corporation
Tech Billionaires & Influential Investors
Cathie Wood (ARK Invest) – Has invested in NVIDIA for its AI potential.
Warren Buffett (Berkshire Hathaway) – Has shown interest but hasn’t heavily invested in NVIDIA yet.
Retail Investors (Public Traders)
NVIDIA is one of the most popular retail-traded stocks, driven by the AI boom and gaming industry.
