Analyst unveils startling Nvidia stock forecast amid tariffs
The stock market took another hit after President Donald Trump announced sweeping tariffs of 10% or higher on some countries, escalating fears of a global trade war and adding pressure to an already struggling U.S. economy.
The S&P 500 dropped 4%. The tech-heavy Nasdaq Composite lost 5%. Nvidia, one of the winners for 2024, is down 6%.
💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵
Severe tariffs could tip the economy into a slowdown and raise already stubborn inflation.
'This was the worst-case scenario for tariffs and were not priced into the markets,' Mary Ann Bartels, chief investment strategist, Sanctuary Wealth, told CNBC. 'The big question is if 5,500 can hold on the S&P 500. If it cannot hold, we may see another 5-10% downside.'
Nvidia's stock has struggled for weeks, and the strain may be growing.
Nvidia's () share price is down 26% from its peak in January. The company is facing pressures on China's cheaper AI model DeepSeek's rollout, disappointing earnings, and a broader tech sell-off caused by economic uncertainties.
In February, the company reported fiscal Q4 revenue of $39.3 billion, a 78% surge from the year-earlier period. However, the growth largely slowed from the 265% the company posted a year earlier. Revenue growth from its key data center segment also slowed down.Despite Nvidia CEO Jensen Huang highlighting many times that the demand for Blackwell is "extraordinary," keeping up with that demand has started to pressure the company's profit margins.
Nvidia reported a non-GAAP 73.5% gross margin for the quarter, 3.2 points shy of a year earlier. The company attributed the smaller profit margin to newer, more complicated, and costly data center products, including Blackwell.
Now, the company could face more trouble because of tariffs.
Nvidia's supply chain is mainly concentrated in the Asia-Pacific region. For the production of its chips, it is highly dependent on foundries such as Taiwan Semiconductor Manufacturing Company (TSM).The White House has said semiconductors would not be subject to the latest tariff. Still, potential retaliatory tariffs from other countries and the escalation of trade wars could weigh on Nvidia's business, as more than half of its revenue comes from sales outside the U.S.
Wall Street analysts are also questioning Nvidia's pricing ability.
HSBC has downgraded Nvidia to Hold from Buy with a price target of $120, down from $175, thefly.com reported on April 3.
The analyst sees limited GPU pricing power going forward that caps earnings upside potential until opportunities evolve in robotics, autos and AI markets.
'Increasing mismatches and inconsistencies in Nvidia's supply chain continue to grow and hence we believe it would be difficult for our bull case scenario, which suggests earnings upside potential, to materialize,' the analyst wrote.
More Nvidia:
Nvidia stock: The AI tailwind could just be getting started
Nvidia stakes out aggressive future, despite investor unease
AI bet from tech upstart could be a major blow to Nvidia
The firm sees limited room for significant earnings upside surprise over the next one to two years and potential re-rating headwinds that it thinks are "yet to be fully factored in by the market."
Nvidia trades at $103 on April 3.Sign in to access your portfolio
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Yahoo
29 minutes ago
- Yahoo
321 Launch: Space news you may have missed over the past week (June 9)
A loud, sustained rumble shook the Space Coast early Tuesday, June 2 — and it wasn't thunder. The loud rumble was a SpaceX rocket taking off on the latest Starlink delivery mission. The liftoff occurred on time at 12:43 a.m. from Cape Canaveral Launch Complex 40, despite bad weather lingering off shore. Read the full story here. Dozens of NASA's missions to explore the cosmos could be in jeopardy under a budget proposal from the White House. President Donald Trump's administration, which released an initial budget proposal May 2 for the U.S. space agency, dropped more details Friday, May 30, about just which NASA programs it looks to cancel. All told, the budget request for the next fiscal year proposes slashing NASA funding by nearly 25% – from $24.8 billion to $18.8 billion – mostly by eliminating a significant portion of the agency's science portfolio. Read the full story here. A week away from their private mission to the International Space Station, four astronauts talked to the media from quarantine on June 3, showing off a plush toy they will be bringing with them into space. It's a swan named Joy, which has special significance to this Axiom crew, made up of astronauts from the United States, India, Poland and Hungary. Read the full story here. It's safe to say that most of us have seen lightning here on Earth plenty of times – some of us have even been struck by it. But the natural phenomenon is one all but a few select individuals will ever have the chance to see from the vantage of 250 miles in orbit. Fortunately, a few astronauts over the years have been more than willing to generously share a glimpse of crashing lightning as seen from outer space. Read the full story here. Much has changed in 15 years, however one thing remains the same: SpaceX still routinely launches Falcon 9 rockets from Cape Canaveral. As new rockets and space companies arrive on the scene, this workhorse of a rocket, the Falcon 9, remains the most common rocket launched from Florida launch pads. It debuted 15 years ago this week, and has changed not only the launch cadence on the Space Coast but the entire industry. Read the full story here. Look for SpaceX to launch another SiriusXM geostationary communications satellite into orbit the night of Friday, June 6, from Cape Canaveral Space Force Station. SiriusXM reported about 33 million subscribers and $1.6 billion in total revenue during the first quarter of the year, per an earnings release. The satellite radio company's podcast business continued to grow, racking up nearly 1 billion downloads and 70 million monthly podcast listeners. Read the full story here. The next group of international astronauts are preparing to head up into outer space. Axiom Space, a company headquartered in Houston, Texas, is set to send four spacefarers up to the International Space Station on a private two-week research mission. The Axiom Mission 4, also known as Ax-4, is the latest in a series of human spaceflights in partnership with both NASA and SpaceX. Read the full story here. One year ago, two experienced NASA astronauts boarded an experimental Boeing spacecraft known as the Starliner for a short voyage to orbit and back. If you followed the Starliner saga as a few days stretched into months, you likely remember how this story ends. Read the full story here. The first human spaceflight for Boeing's Starliner made headlines for all the wrong reasons. But one year after its launch, it appears neither Boeing nor NASA have given up the spacecraft. On June 5, 2024, the Starliner got off the ground from Florida with two experienced NASA astronauts aboard for what was to be a brief trip to the International Space Station. Days then stretched into months after mission engineers noticed that the vehicle had encountered a slew of mechanical issues during its orbital voyage. Read the full story here. Launch recap: Scroll down to review live updates from the Saturday, June 7, liftoff of a SpaceX Falcon 9 rocket from Cape Canaveral on the SiriusXM SXM-10 mission. Read the full story here. With President Donald Trump and SpaceX founder and CEO Elon Musk exchanging barbs during a June 5 social media spat, potential space-industry threats emerged — cancellation of Musk's federal contracts and decommissioning SpaceX Dragon spacecraft — that could pack profound impacts for Florida's Space Coast. That said, Don Platt, director of the Florida Institute of Technology's Spaceport Education Center in Titusville, believes it is best to "take it all with a grain of salt." He noted that SpaceX and the U.S. government depend heavily on each other. Read the full story here. After hours of evening lightning delays and towering clouds, SpaceX crews waited until after midnight to launch SiriusXM's latest geostationary satellite from Cape Canaveral Space Force Station. The Falcon 9 rocket propelled off the pad at 12:54 a.m. Saturday, June 7, and delivered the third-generation, Maxar Space Systems-manufactured SXM-10 satellite into orbit. Read the full story here. The notion of launching rockets into space from the decks of seafaring ships leaves a lot of people scratching their heads and wondering, "Why?" acknowledges Tom Marotta, CEO and founder of The Spaceport Company. But amid record-breaking launch demand, Marotta noted that U.S. commercial rocket companies have limited locations to send up rockets, such as Florida's Space Coast and Vandenberg Space Force Base in California. Conversely, aircraft pilots can take flight from more than 20,000 airports and airfields across the nation. Read the full story here. Get ready for a launch day treat. Plans right now call for a crewed launch, followed by a second launch in a rare launch double-header. Throw in a sonic boom and June 10 could be an extra special space day on the Space Coast. Plans could easily change but if all goes on schedule then the Axiom Mission 4 Crew will launch from pad 39A at NASA's Kennedy Space Center at 8:22 a.m. June 10. The mission marks a return to spaceflight for three countries who have astronauts onboard and a return to the International Space Station for one of NASA's most well-traveled former astronauts. Read the full story here. For the latest news from Cape Canaveral Space Force Station and NASA's Kennedy Space Center, visit Another easy way: Click here to sign up for our weekly Space newsletter. Rick Neale is a Space Reporter at FLORIDA TODAY. Contact Neale at Rneale@ Twitter/X: @RickNeale1 Space is important to us and that's why we're working to bring you top coverage of the industry and Florida launches. Journalism like this takes time and resources. Please support it with a subscription here. This article originally appeared on Florida Today: 321 Launch: Space news you may have missed over the past week (June 9)
Yahoo
33 minutes ago
- Yahoo
Bitcoin's rally means all of Strategy's purchases are profitable
(Bloomberg) — The mini rally in Bitcoin (BTC-USD) over the past few trading sessions has made every purchase of the cryptocurrency by Michael Saylor's Strategy (MSTR) over the last four plus years profitable. The former MicroStrategy Inc. announced earlier Monday that it had acquired an additional 1,045 tokens for $110.2 million from June 2 to June 8, or for an average price of $105,426 each. Bitcoin was up about 1.7% to $108,022 as of 12:39 p.m. in New York, and has climbed around 7.5% since June 5. Strategy has made around 70 separate purchase announcements since Saylor began to invest cash from the enterprise software maker's balance sheet into Bitcoin in the middle of 2020. That includes 15 purchases of $1 billion or more of Bitcoin, according to data compiled by Bloomberg. As the price of Bitcoin fluctuated over the years, many of the purchases were periodically under water. Saylor, who co-founded the Tysons Corner, Virginia-based firm and and serves as executive chairman, later begin selling common shares as well as preferred stock and debt to fund additional purchases. Strategy owns 582,000 Bitcoin, valued at about $62.9 billion, The overall average price per token is $70,086. The latest purchases were made with $112 million in net proceeds from the sale of the company's Strike preferred stock (STRK) and Strife preferred stock (STRF), according to a filing with the US Securities and Exchange Commission. Last week, Strategy sold another class of securities, called Perpetual Stride Preferred Stock, (STRD). The firm estimated it will realize net proceeds of about $979.7 million from the offering. The top 26 purchase announcements based on the average cost of Bitcoin have all happened in the last 12 months, data compiled by Bloomberg shows. Strategy is the leading corporate holder of the digital currency. Saylor has pledged to raise $84 billion in equity and debt. The Strategy playbook has inspired many copycats looking to share the same success from purchasing and holding cryptocurrencies to boost their share prices. Companies such as Mara, Gamestop, Semler and Trump Media have all announced plans to use cash to buy the cryptocurrency, but none have been able to replicate the successes Saylor's company enjoys. Shares of Strategy rose about 3.4% to $387.30 on Monday, and are up over 3,000% since July 2020. The S&P 500 Index has climbed around 93% during the same period, while Bitcoin has rallied about 1,060%. ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Forbes
36 minutes ago
- Forbes
Musk And Trump's Master Class In What CEOs Should Not Do
When a CEO has a falling out with another leader, it's usually not a huge news story. But when that CEO is Elon Musk, it's another matter entirely. The CEO of companies including Tesla, SpaceX and xAI is known for his dramatic and mercurial management and personal style, and it's amplified by his social media platform X. And in this case, the other leader is President Donald Trump, who is also known for a dramatic and volatile personal style. Both men are widely considered difficult to work with, and the strength of the close bond they forged (with probably more than a little help from Musk's more than $250 million in campaign contributions during the election) was widely questioned. And last week, it all ended in spectacular fashion. From X, Musk began attacking Trump and the administration for the 'big, beautiful bill'—featuring tax cuts and adding trillions to the deficit—and Trump hit right back on Truth Social, threatening to cancel all of the contracts Musk has with the federal government and pledging to sell the Tesla he bought earlier in the year when Musk brought several models to show off at the White House. And, because both of their social media accounts are public, the world watched, jeered, laughed and memed. The personal attacks have died down and, Forbes' Jeremy Bogaisky points out, it's highly unlikely that all SpaceX contracts will be canceled, considering NASA relies on the company's rockets and satellites. But Trump and Musk have again put on a breathtaking display of what not to do in business. It should be apparent that business leaders should avoid getting into an emotional fight on social media, but neither Trump nor Musk is known for doing things by the book. The feud cratered stock for each man's publicly traded companies—Musk's Tesla and Trump Media and Technology Group—and erased billions from Musk's net worth. As the dust settles, it's unclear what the long-range impact of this flameout will be. Musk was successful in getting some Republicans in Congress and ordinary people to start questioning the spending bill. And though his net worth took a beating, he remains the world's richest person. However, Musk likely will be the loser in the fight, at least in the short term. Musk's role in the Trump Administration, serving as a special government employee who gleefully and mercilessly chainsawed his way through government departments, bureaucracy and career employees, tarring many functions that had existed for generations as 'fraud,' soured the public's perception of him—and Tesla. Musk's car company was already seen to be on the decline, thanks to a series of non-political decisions he made prior to getting involved with Trump, including a pullback on an affordable model, the overly expensive albatross Cybertruck, and a new focus on self-driving taxis. Tesla deliveries and sales have been down, and Forbes' Alan Ohnsman writes that there are many areas where Trump could use federal regulations to attack Musk, including a review that could lead to his robotaxi launch being blocked, or investigations into the carmaker's technology. And many Tesla shareholders, including several union pension funds, are growing increasingly tired of Musk being in the CEO's chair at all. Many are pushing Tesla's board to replace Musk, Ohnsman writes. Nine state treasurers and comptrollers sent Tesla Chair Robyn Denholm a letter last month expressing concern about the risks to their economies if Tesla falters. Whatever happens next with Musk will determine many things for the long and short term. When society is tumultuous, people often look back to nostalgic memories—and for many around the world, Crayola has an outsized role in their childhood. I spoke with CEO Pete Ruggiero, who has worked at the creativity company for nearly a quarter century, about how they use nostalgia and creativity innovation to drive brand growth. An excerpt from our conversation is later in this newsletter. getty It's not just you; everyone is having a difficult time right now. In Q2, the Conference Board's Measure of CEO Confidence fell by 26 points, bottoming out at 34, the largest quarter-over-quarter decline since the quarterly survey began in 1976. Any score under 50, the Conference Board writes, means there were more negative than positive responses. CEOs haven't been this pessimistic since Q4 2022, when high inflation and supply chain difficulties were in full swing. CEOs' responses were pessimistic about many business factors. A total of 82% said today's economic conditions are worse than six months ago. Nearly seven in 10 said conditions in their industries are now worse than they were six months ago. And 64% expect economic conditions to get worse in the next six months. About 83% anticipate a recession in the next 12 to 18 months. The biggest concerns for CEOs in all industries are geopolitical instability, trade and tariffs, and legal and regulatory uncertainty. With all of the issues, however, most CEOs aren't anticipating a deviation from hiring plans. Just under half plan to maintain the size of their workforce, and compared with Q1, only 1% more expect a net reduction. A now hiring sign on the window of a closed Big Lots store in Lewisburg, Pennsylvania. For the most part, there were no wild swings in the stock market last week. But that doesn't mean things were uneventful. Employment figures were released, showing weak private sector job growth, according to a report from ADP. The U.S. added just 37,000 private sector jobs—far short of consensus forecasts of 110,000 new positions. Small business employment was down 13,000 and manufacturing jobs were down 3,000. Chris Larkin, head of trading and investing at E-Trade, told Forbes that some tariff-related slowdowns in the market were to be expected. Trump, meanwhile, used the report to demand that the Federal Reserve 'LOWER THE RATE' for baseline interest at its meeting next week. (According to CME FedWatch, 99.9% of analysts think interest rates will not be changed.) The Labor Department's employment report was more optimistic, indicating that the U.S. added 139,000 nonfarm jobs from April to May, and the unemployment rate held steady at 4.2%. Meanwhile, the newly increased 50% tariffs on most imported steel and aluminum went into effect last Wednesday. Trump had said this increase was necessary to counter 'trade practices that undermine national security,' though it was condemned by global players including the EU and Canada. At the 2025 Forbes Iconoclast Summit last week, hedge fund billionaire Ken Griffin shared his frustration with Trump's 'anti-growth' tariff agenda, which he said has 'taken their toll already on our economy.' Griffin wasn't the only one to share that sentiment last week. A report from the Organization for Economic Cooperation and Development warned that Trump's tariffs are likely to significantly slow down the global economy, and the U.S. will be one of the nations that is hardest hit. The Clinton Clean Energy Center in Clinton, Illinois. All technology—enterprise or not—appears to be moving toward more sophisticated AI functions. And while AI can do many things, it requires a lot of electricity. Last week, Meta made a deal to get the power it needs, signing a 20-year agreement to purchase all of the power generated at a Constellation Energy nuclear plant in Clinton, Illinois. The agreement starts in June 2027—after an existing state agreement runs out—and will expand the plant's output. Meta has prioritized finding sources of nuclear power, both with new plants and existing ones, to support its technology going forward. The company announced an RFP for nuclear energy developers in December, and says it has shortlisted potential new nuclear power resources. This is the second deal a tech company has made with Constellation to redevelop its nuclear plants for AI. In September, Microsoft announced a 20-year deal with the power provider for one of its reactors at its Three Mile Island facility in Pennsylvania (not impacted by the 1979 meltdown). Constellation has said it expects to restart the reactor by 2028. Amazon and Google have both been investing in small nuclear reactors, and Google announced an investment in three advanced nuclear energy projects by Elementl Power. These deals, coupled with four executive orders from Trump aimed at bolstering nuclear power, seem to herald a new nuclear power age in the U.S., writes Forbes senior contributor David Blackmon. In the meantime, tax incentives for renewable energy sources, including solar panels and wind turbines, are in line to be cut in Trump's latest budget. Still, Forbes senior contributor Ken Silverstein writes, renewable energy is touted by many as the fastest and least expensive way to get more power into the grid—and could also play a huge role in generating the electricity needed for the AI-driven future. Crayola CEO Pete Ruggiero. Pete Ruggiero started working at Crayola in 1997 under its previous name, Binney & Smith. In his time at the company, he's worked in operations, sourcing, supply chain and ran its European business. He was COO from 2020 until last year, when he was named CEO. I spoke with Ruggiero about the company's position at the intersection of creativity and nostalgia for consumers of all ages, and its plans for innovation and expansion. This conversation has been edited for length, clarity and continuity. A longer version is available here. What do you see as the purpose of the Crayola brand? Ruggiero: I see a brand that is ubiquitous. Wherever a consumer is experiencing a creative moment, this brand is present. I see a brand that's global in nature. It's underrepresented outside the United States, yet our brand recognition is surprisingly high in all markets. One of our initiatives is to grow Crayola to be 30% outside of the U.S. and Canada by 2030. It's competitive but we have some work to do there. This whole idea of being wherever the consumer is comes through innovation, international expansion and category expansion. We are right now held tight in what we call the 'Crayola aisle.' The consumer expects us to be in the toy aisle, the craft aisle, at checkout and other places, and we're underrepresented there. You want Crayola to be a brand that's ubiquitous whenever anybody is thinking of creating. How do you expand from what everybody thinks about—a go-to for children's art projects—while using the branding that you have and not alienating the people who have depended on you? It always comes back to the consumer and this majestic brand. You just have to look at some of the work we've been doing. Our Campaign For Creativity was our effort to understand more deeply why creativity is so important to our consumers: Why is it that nine out of 10 parents believe creativity is important for their children, and why is it that 96% of parents use color to help their children understand creativity? We used some of our artwork from the Dream Makers program, and went back to some of the artists who had created that 30 years ago to understand what creativity has meant in their lives. We get a deeper understanding of the consumer. Creativity Week is a program that we've done for the past four years. It started out as a test and we've been able to expand it this year to 44% of all school-aged children in the U.S. This was actors and artists and authors, an Olympian and astronauts all participating in bringing creativity to children. We were in 122 countries doing these programs. The nostalgia and excitement around our brand is very interesting. There's more to us than back-to-school business. We're selling year-round. When I came to this company, we started building inventory in January. We would ship everything out the door, and I'm not sure what we did with ourselves from September until December. The business model now is global and year-round. As soon as the Easter period ended, we're prepping for and shipping back-to-school. As soon as back-to-school is over, we'll be prepping for and shipping Halloween, and then the holiday season. Then we'll go back to school and Valentine's Day. We're actually going a step further to experiential retail with the Crayola Experience. We have a Crayola Experience model—Orlando, Florida, and Easton, Pennsylvania, are the lynchpins—800,000 people come through those two Crayola Experiences a year. The dwell time is three and a half hours. We've expanded that model overseas. We've already announced China and we're announcing other markets shortly. When you think about a brand that moms and teachers and dads trust and kids love and adore, and we have a parent company—Hallmark, [with a] media business, the Hallmark Channel. There's this great opportunity for us to be in more and to enter the studios business. You've seen the company for a long time and from many different viewpoints. How is it different from the CEO's office? I've worked directly for four CEOs, and I've seen five CEOs come through. Each CEO that I've had the chance to work for or with had great ideas and brought great things to this company. One of the first things I did when I became CEO was to pull out their strategic planning exercises, many of which I participated in as a member of the leadership team, and figure out those ideas that are working and those that were really good but whatever reason stalled out. That's the exciting part for me: To be able to step into the chair having seen all of the good work that previous CEOs have done, and take it to the next level. What I'm most excited about bringing to the table is a focus on a very simple strategy of next-level mindset building Crayola for the next quarter century, focused on culture, growth and diversification. The culture here is around collaboration, celebration. We try to celebrate when we win. A culture of: It's healthy to celebrate your problems. It's unhealthy to kick them under the carpet. And a culture of perpetual optimism, that if you say it out loud, it has a pretty good chance of coming to be. The last piece here is we're trying to get excellence in everything we do. As Vince Lombardi said, we're chasing perfection so that we can achieve excellence. That's a very lofty target, but we're going to be very good in things that we do. What advice would you give to other CEOs? Transparency and authenticity are the most important characteristics. Your employees have to trust you. They have to believe in what you're doing. And the only way to gain that trust is through transparency and authenticity. When things aren't good, you take accountability for it. When things are great, you're celebrating it and you're giving credit for the successes. Send us C-suite transition news at forbescsuite@ The first half of 2025 has been a workout for even the most well-prepared CEO, and it looks like things will not be calming down any time soon. To finish the year strong—in terms of both leadership and mental health—take these steps to take care of yourself and be honest with employees and investors. No matter how careful and well-intentioned you are, executives and companies can make mistakes and a public apology may be necessary. Here are some tips to make that apology in a way that is sincere and causes the least amount of brand damage. The House of Representatives passed a bill by voice vote last week that could have a big impact on small business contracts with the federal government. What would it do? A. Limit the size of contracts to $1 million per year B. Require that all contracts be written in plain language C. Require contractors to complete a short answer about how their services will further the Trump Administration's goals D. Remove all diversity requirements See if you got it right here.