NVIDIA downgraded by HSBC due to slowing AI GPU momentum, potential limited upside

From Yahoo Finance: 2025-04-07 14:14:00

The newly announced tariffs by U.S. President Donald Trump could impact many stocks. Investment firm Bernstein warns of higher uncertainty and downside risk for semiconductor stocks post-tariffs. AI industry is projected to reach $4.8 trillion by 2033, but benefits are expected to be concentrated, raising concerns about job displacement and income inequality.

UN Trade and Development agency reveals AI market cap may equal Germany’s economy size. Concerns about automation and job displacement are significant, with 40% of jobs worldwide at risk. AI benefits tend to favor capital over labor, widening inequality and potentially reducing the competitive advantage of low-cost labor in developing economies.

IMF voices concerns over AI causing income polarization within brackets. Workers who can harness AI may see productivity and wage increases, while others fall behind. AI exposure expected to impact 60% of advanced economies and worsen income inequality. Policymakers urged to proactively address the issue to protect vulnerable livelihoods.

NVIDIA (NVDA) downgraded by HSBC due to slowing AI GPU momentum. Analyst predicts limited upside potential for the company, citing potential re-rating headwinds and lack of significant earnings upside surprise. Chinese AI startup DeepSeek’s impact on stock performance noted. NVDA ranks 5th on list of AI stocks, with some AI stocks showing higher returns than NVDA. An article on Insider Monkey highlights an undervalued AI stock with potential for massive gains, trading at less than 5 times its earnings. The report suggests this stock could be more promising than NVDA, offering a potential 10,000% upside. For more information, readers can check out the full report on the cheapest AI stock.

The article does not provide specific figures, facts, or statistics about the AI stock mentioned. It focuses on the potential for significant gains and affordability of the stock compared to NVDA. Readers are encouraged to read the full report for more details on this promising investment opportunity.



Read more at Yahoo Finance: NVIDIA (NVDA) Downgraded by HSBC as AI GPU Momentum Shows Signs of Slowing