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The stock market achieved another success after President Donald Trump announced a 10 % or higher tariff in some countries, fears of a global trade war escalated and add pressure on the American economy, which is already struggling.
S&P decreased 400 %. Nasdaq technology has lost 5 %. Nafidia, one of the 2024 winners, decreased by 6 %.
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Severe definitions can prevail the economy in slowing and raising the already stubborn inflation.
“This was the worst scenario of definitions and was not priced in the market,” Mary Ann Bartls, head of investment strategies at Sanctuary Wealth, told CNBC. “The big question is whether 5500 can be installed on the S&P 500. If it is not able to withstand, we may see the negative side by 5-10 %.”
NVIDIA share for weeks, and the breed may grow.
You can see Nvidia more troubles in the future
Nafidia ((Nvda)) The share price decreased by 26 % of its peak in January. The company faces Deepseek’s Deepseek pressure, disappointing profits, and the sale of the broader technology caused by economic uncertainty.
In February, the company informed the revenues of the fourth fiscal quarter of $ 39.3 billion, by 78 % of the period dating back to the year. However, the growth slowed to a large extent from 265 % the company published a year ago. The growth of revenue from the main data center sector slows down.
Related: NVIDIA shares “very expensive” despite standard growth – when is purchased
Although NVIDIA CEO Jensen Huang highlights several times that the demand for Blackweell “is unusual”, he has begun to keep up with this request to pressure the company’s profit margins.
NVIDIA reported a total margin other than the generally accepted accounting principles of 73.5 % for a quarter, which is 3.2 shy points of the previous year. The company attributed the smaller profit margin to the products of the new, more complex and expensive data center, including Blackweell.
Now, the company may face more troubles due to the definitions.
The NVIDIA supply chain is mainly concentrated in the Asia Pacific region. To produce its chips, it depends greatly on the Assassation, such as the Taiwan semiconductor manufacturer (TSM).
Related: The veteran analyst determines the recession expectations in the war of tariffs
The White House said that semi -conductors will not be subject to the latest tariff. However, the possible revenge definitions from other countries and the escalation of commercial wars can affect the business of NVIDIA, as more than half of its revenues come from sales outside the United States
NVIDIA reduced the contract in HSBC
Wall Street analyzes also question the ability of NVIDIA pricing.
HSBC reduced the NVIDIA classification to keep it from Buy with a $ 120 goal, a decrease of $ 175, Thefly.com said on April 3.
The analyst sees a limited GPU pricing power to move forward that reaches higher capabilities for profits until opportunities develop in robots, cars and artificial intelligence markets.
“Increased inconsistency and contradictions in the NVIDIA supply chain continues to grow, and therefore we believe that it will be difficult for the bull’s status scenario, which indicates the potential of upward profits, to verify,” the analyst wrote.
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The company sees a limited space for a big surprise in profits over two to two years, and possible contrast frequencies in the belief that it was “not taken into account in full by the market.”
NVIDIA is trading at $ 103 on April 3.
Related: The Veteran Fund Director reveals the prediction of the S&P 500
