Nvidia (NVDA) / Jensen Huang 02 (Jul 23 - Dec 26)

[behappyalways]

Singapore Probes Nvidia AI Chip Shipments By Middlemen To Malaysia Amid DeepSeek Scrutiny
https://www.zerohedge.com/technology/si ... k-scrutiny

[winston]

vested

Nvidia’s (NASDAQ:NVDA) fate hinges entirely on the AI narrative.

The stock is down 12.7% in the past month. This could be the start of a cyclical downturn in the broader semiconductor market like in 2022.

The growth rates have been solid so far but Nvidia hasn’t beat estimates too significantly, and tariffs and chip restrictions could shave off billions off of its sales if they materialize.

if you think companies will keep pouring money into AI, the dip could be worth buying. But given the risk of a long-term cool-off in AI stocks, it’s better to hold off on buying the dip.

The consensus price target of $169.6 implies 49.8% upside.

Source: Money Morning

[winston]

vested

3 Tech Titans Most At Risk As Trump’s Tariffs Take Effect

by Rich Duprey

Nvidia (NVDA) is the third tech titan to avoid in the current trade war due to its reliance on a global supply chain.

Nvidia’s GPUs, critical for AI and gaming, depend heavily on components sourced from China, where 20% to 25% of its supply chain originates.

A 60% tariff on Chinese imports could sharply increase production costs for chips like Nvidia’s popular H100 chips as well as its newest Blackwell GPUs, potentially squeezing Nvidia’s fourth-quarter 73.5% gross margin, which already dipped from Q3’s 75% margins.

Nvidia manufactures most chips through Taiwan Semiconductor Manufacturing (TSM) in Taiwan, but final assembly and packaging often involve Chinese facilities.

TSM just announced a massive investment in new U.S. factories, but they take time to build and won’t be online for some time to come.

Retaliatory tariffs from China, a key market accounting for 15% of Nvidia’s $39.3 billion Q4 revenue, could further hurt sales, as seen during the 2018 trade war when China targeted U.S. tech exports.

NVDA stock goes for $116 per share, down 24% from its January highs, but also below the level it traded at following the DeepSeek AI model revelation.

With no dividend to cushion investors, Nvidia’s high valuation of 39 times earnings and 21 times sales makes it especially vulnerable to tariff-driven cost hikes and potential demand slowdowns in a trade war environment.

Source: Money Morning

https://tradesoftheday.com/2025/03/06/3 ... ke-effect/