Will Nvidia rise above $100 anytime soon ?
At the start of the week, the Dow fell more than 1,200 points.
Attacks on Powell have picked up as:
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Central bank officials express concerns that Trump’s tariffs have sparked higher inflation expectations and could lead to price growth that’s more than just a one-time uptick.
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The uncertainty generated by Trump’s tariffs to businesses and more importantly to the US economy in the coming months., leading to the Fed taking a wait-and-see approach on cutting the Fed funds rate that stands at 4.25% - 4.5%.
Wall Street got worried whether President Donald Trump’s attacks on the Federal Reserve chair were more than just bluster.
By the time market closed:
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DJIA: -2.48% (-971.82 to 38,170.41.
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S&P 500: -2.36% (-124.50 to 5,158.20).
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Nasdaq: -2.55% (-415.55 to 15,870.90).
One of the “surprises” of the day was $NVIDIA(NVDA)$ falling below $100 again. (see below)
At the end of Mon, 21 Apr 2025, NVDA closed at $96.91, its 2nd lowest, with the lowest being $94.31 on 04 Apr 2025.
To add oil to fire, $Deutsche Bank AG(DB)$ trimmed NVDA’s price target, citing the new restrictions on chip shipments to China that led to a $5.5 billion charge for the company, as the main reason.
Analyst Ross Seymore lowered NVDA’s price target to $125 from $135 with a “Hold” rating.
In a note to clients Seymore acknowledged that:
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Export restrictions could have meaningful impact on its earnings.
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Although there is reduced risks in China, increased uncertainty over continuous high-spending on AI due to the current trade war, dulled business prospect.
NVDA have already fallen more than -13% since announcing that charge on 15 Apr 2025.
It does not help that Reuters has reported that Chinese tech giant Huawei is set to begin shipping advanced AI chips as early as next month, in the wake of Trump's export rules effectively banning Nvidia's sale of its H20 chips in China. (see above)
Report of the latest Huawei chip comes nearly one week after Nvidia said the US government had effectively banned sales of its H20 graphics processing units, a version of its H100 AI chips made for Chinese consumers to comply with US trade rules.
Despite Nvidia's CEO recent visit to China and subsequent announcement, saying they'll keep working together, the lack of specifics makes it feels like an uphill challenge.
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Do you think will be able to recover back to $100 mark, anytime soon ?
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Do you think China will ‘mandate’ companies to source for semiconductor chips domestically ?
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Will it raise above plt
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