Prediction: Nvidia Will Beat the Tariff Turmoil (and the Stock Will Soar)
Everything seemed to go right for Nvidia (NASDAQ: NVDA) last year. The chip designer saw enormous demand for its new Blackwell architecture and reported record levels of revenue and profit -- and investors rushed to buy the stock. The Dow Jones Industrial Average (DJINDICES: ^DJI) even invited Nvidia to join, and this new member delivered the best performance in the index for the year, advancing more than 170%.But this year, things have been much more difficult for the artificial intelligence (AI) superstar. President Donald Trump announced a broad plan to tax imports from countries around the world, and that translates into higher costs for companies that import materials and products. Nvidia just so happens to be one of those companies, as it makes most of its AI chips in Taiwan.Of course, Nvidia isn't alone in this situation. Most tech companies rely heavily on other countries for the manufacturing of their products, and companies in other sectors, from retail to automobiles, also use imports.Continue reading
Everything seemed to go right for Nvidia (NASDAQ: NVDA) last year. The chip designer saw enormous demand for its new Blackwell architecture and reported record levels of revenue and profit -- and investors rushed to buy the stock. The Dow Jones Industrial Average (DJINDICES: ^DJI) even invited Nvidia to join, and this new member delivered the best performance in the index for the year, advancing more than 170%.
But this year, things have been much more difficult for the artificial intelligence (AI) superstar. President Donald Trump announced a broad plan to tax imports from countries around the world, and that translates into higher costs for companies that import materials and products. Nvidia just so happens to be one of those companies, as it makes most of its AI chips in Taiwan.
Of course, Nvidia isn't alone in this situation. Most tech companies rely heavily on other countries for the manufacturing of their products, and companies in other sectors, from retail to automobiles, also use imports.
