The US stock market was dealt a massive blow by the presence of US President Donald Trump’s Liberation Day tariff plan. Indeed, the Dow Jones fell more than 1,000 points for two consecutive days as things got dire. Among the struggling firms was Nvidia (NVDA), whose stock got a rare downgrade from concerned experts.
The tech giant was among the biggest winners in the stock market in 2024. Over the course of the last year, it jumped more than 170%. However, things changed drastically this year, with geopolitical concerns and economic frailty hindering its ability to find its footing. Now, all eyes are on its outlook, with Wall Street getting increasingly bearish on the stock.
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Nvidia Gets a Downgrade, and Its Problems May Be More Than Trump’s Tariffs
When rumors started swirling of the Trump administration’s bevy of reciprocal tariffs, the stock market was always going to be hit the hardest. The surge in economic concerns and recession fears spooked traders. Moreover, it pushed down a host of companies that had already faced a sluggish 2025.
One of the best-performing firms of the last two years has been among the hardest hit. Indeed, Nvidia (NVDA) and the stock’s 2025 performance have led it to receive a rare downgrade as experts have expressed some concern about the AI chipmaker.
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HSBC analyst Frank Lee lowered his rating on the stock Thursday. However, he noted that the move actually had little to do with the Trump tariff plan inspiring market-wide panic. His stance against the stock comes alongside his belief that what has propelled its growth in the first place may be losing some steam.
“Over the past three quarters, the magnitude of Nvidia’s quarterly earnings and guidance beat has been getting smaller,” Lee said. He added that it has only given “increasing market focus on NVidia’s earnings as well as ongoing uncertainty over its Blackwell supply chain ramp-up.”
Lee is now one of just six analysts who have given the rating to the tech giant. Indeed, it still holds a buy rating from most, even with it dropping below $100 on Friday. Its median price target sits at $175, denoting an 83% upside for the stock over the next 12 months.
