Should You Buy Nvidia Before May 19?
Nvidia (NASDAQ: NVDA) skyrocketed last year as demand for its artificial intelligence (AI) products and services took off, led by some of the world's biggest tech companies. These players aim to win the AI race and, to do so, need the very best tools to supercharge their platforms. For this, they've turned -- and continue to turn -- to Nvidia.But in recent times, despite record earnings and demand for Nvidia products, the stock price has stumbled. This isn't specific to Nvidia. It's happening throughout the market amid concerns about President Donald Trump's move to tax imports. The president announced an initial tariff plan last month, then paused it to negotiate deals with various countries.Meanwhile, Trump exempted electronics products such as AI chips from the tariffs, but this status is temporary. Investors have worried that tariffs may lead to higher prices and therefore hurt companies in two ways: (1) Demand for their products could drop, and (2) their expenses may rise. Nvidia may be well positioned to handle potential tariffs, though. The company recently made a big move to increase production in the U.S., and its $43 billion in cash gives it the financial strength it needs to face potential headwinds.Continue reading
Nvidia (NASDAQ: NVDA) skyrocketed last year as demand for its artificial intelligence (AI) products and services took off, led by some of the world's biggest tech companies. These players aim to win the AI race and, to do so, need the very best tools to supercharge their platforms. For this, they've turned -- and continue to turn -- to Nvidia.
But in recent times, despite record earnings and demand for Nvidia products, the stock price has stumbled. This isn't specific to Nvidia. It's happening throughout the market amid concerns about President Donald Trump's move to tax imports. The president announced an initial tariff plan last month, then paused it to negotiate deals with various countries.
Meanwhile, Trump exempted electronics products such as AI chips from the tariffs, but this status is temporary. Investors have worried that tariffs may lead to higher prices and therefore hurt companies in two ways: (1) Demand for their products could drop, and (2) their expenses may rise. Nvidia may be well positioned to handle potential tariffs, though. The company recently made a big move to increase production in the U.S., and its $43 billion in cash gives it the financial strength it needs to face potential headwinds.
