NVIDIA (NVDA) stocks immersed more than 10% last week amidst economic instability in the US following Trump’s tariff announcement. The stock rebounded just 3.2% on Monday, but the market experts still remain mixed in the immediate future of NVDA stocks. The market looks bleak, but one investment expert is calling for you to buy Nvidia dip.
Brad Gerstner, founder of Tech Firm Altimeter Capital, recently said he had bought Nvidia (NVDA) shares to CNBC. Gerstner cited the extremely strong demand for GPU chips and Trump’s decision to exempt semiconductors from tariffs. As Nvidia is undoubtedly a global leader in the semiconductor industry, Gerstner suggests that this current DIP is not an opportunity for mistakes.
“Demand for GPUs is off the charts,” the investor said. “We’ve heard that from Google (Goog), Tesla (TSLA), and more.” Noting that Trump has exempted the chip from tariffs, Gerstner also suggested that semiconductors are likely to take over future tariffs.
“If we “charge and buy customs duties on designed chips” from large US companies, including Meta (Meta) and Microsoft (MSFT), we shoot ourselves with our feet,” added Gerstner.
Can Nvidia rebound in a recession?
Meanwhile, this bullish sentiment could change as the US enters a recession. Many economic experts have already predicted that if that’s not yet, then there could be a person coming. The recession means even more bearish momentum for the US stock market, especially for peers like Nvidia, who rely heavily on foreign markets.
HSBC analyst Frank Lee lowered his valuation on NVIDIA stock last week. 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.”
