Bank of America predicts growth for Nvidia stock despite challenges from tariffs

From Yahoo Finance: 2025-04-06 14:03:00

Following President Trump’s tariff announcement, the S&P 500 and Nasdaq composite plummeted 10% and 11% respectively. The tariffs could raise prices for U.S. consumers and businesses, impacting demand for semiconductors. Nvidia stock dropped over 14%, with analysts downgrading it citing pricing power concerns. The Philadelphia Semiconductor Index fell nearly 10%.

Nvidia’s revenue growth slowed to 78% year-over-year in Q4 2024, with challenges including pressure on profit margins due to increased demand for complex data center products like Blackwell. Despite the tariff impact, CEO Jensen Huang remains optimistic, suggesting minimal short-term effects. Bank of America defends Nvidia, naming it a top semiconductor pick post-tariffs.

Bank of America analysts predict that companies with solid balance sheets and exposure in AI, cloud, and complex computing, like Nvidia, Broadcom, and others, are likely to fare better in the long term despite the impact of tariffs. U.S.-based manufacturers such as Texas Instruments and Intel may benefit from supply chain shifts.

Nvidia’s stock closed at $94.31 on April 4, down 30% year-to-date. Bank of America sees the stock as a compelling buy due to its unique tech franchise and leading position in growing trends. Despite challenges, Nvidia remains resilient, with pricing power and strong fundamentals in AI, cloud, and complex computing.



Read more at Yahoo Finance: Bank of America gives eye-popping Nvidia stock forecast amid tariffs