Nvidia Stock Tumbles As Trump’s Tariffs Threaten AI Bellwether’s Margins And Costs: Retail’s Uncertain

Shares of Nvidia Corp. (NVDA) declined nearly 6% in after-hours trade on Wednesday amid President Donald Trump’s “Liberation Day” tariffs announcement. Trump announced reciprocal tariffs of 32% on Taiwan, 34% on China and 20% on Europe.

The tariff announcement led to a decline of nearly 5.7% in the chipmaker’s stock price. Nvidia manufactures its chips in Taiwan and assembles its artificial intelligence systems in Mexico and other countries.

Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), which makes advanced semiconductors for Nvidia and others, declined over 6% in after-market hours after the tariffs were announced.

"Taiwan, they took all of our computer chips and semiconductors," Trump said Wednesday.

Analysts at Wedbush said that for Nvidia and other chipmakers with exposure to China and Taiwan supply chains, the worry will be around pricing and margin impacts amid the high tariffs.

Nvidia CEO Jensen Huang had earlier said that the company expects minimal short-term impact from the potential tariffs and, if necessary, would relocate production to the U.S. in the long term.

On Stocktwits, retail sentiment around Nvidia surged to enter the ‘neutral’ (50/100) territory from ‘bearish’ (42/100) a day ago.

NVDA sentiment and message volume April 2, 2025, as of 9 pm ET | Source: Stocktwits

A user posted that Nvidia is going under $100.

Another user was more optimistic, saying that Nvidia will turn “green tomorrow.”

Another bullish user called the decline a “dream moment” for long-term investors.

Nvidia has received huge orders from China, with companies like ByteDance, Alibaba Group, and Tencent Holdings placing orders for $16 billion worth of H20 server chips in the first three months of 2025.

Nvidia’s stock has fallen nearly 18% year-to-date.

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