The US stock market has been hit hard by the presence of President Donald Trump’s release day tariff plans. Certainly, the Dow Jones have dropped more than 1,000 points for the second day in a row. Among the struggling companies is Nvidia (NVDA), whose stock has been subjected to a rare downgrade from the experts involved.
The tech giant was one of the biggest winners in the stock market in 2024. Over the last year, more than 170% jumped. But things have changed dramatically this year, with geopolitical concerns and economic frailty hampering their ability to find a foothold. Now, all eyes are in that outlook, and Wall Street is increasingly weakened by stock.
Nvidia gets a downgrade and the issue may be more than Trump’s tariffs
The stock market will always be hit hardest when rumors of a mutual tariff swarm of the Trump administration are swirling. Economic concerns and a surge in recession scare fearful traders. It also pushed down the hosts of companies facing 2025 slump.
One of the best performing companies in the last two years has been hit hardest. In fact, NVIDIA (NVDA) and stock performance in 2025 has resulted in a rare downgrade as experts have expressed some concern about AI chip makers.
HSBC analyst Frank Lee lowered the stock’s valuation on Thursday. However, he pointed out that the move has little to do with the Trump fare plan, which inspires panic across the market. His stance on stocks comes alongside his belief that the one that propelled that growth in the first place may be losing steam.
“Over the last three quarters, Nvidia’s quarterly revenue and guidance beat have been smaller,” Lee said. He added that it only gave “the market focus on Nvidia’s revenues, and continued uncertainty regarding ramp-up of the Blackwell supply chain.”
Lee is currently one of only six analysts who have given ratings to the tech giants. In fact, even if it fell below $100 on Friday, it still retains purchase ratings from most people. The median price target is $175, indicating an 83% upside of the stock over the next 12 months.
