Nvidia (NVDA) stock has dipped over 10% in the past week amid US economic instability following Trump’s tariff announcement. While the stock rebounded slightly on Monday by 3.2%, market experts are still mixed on the immediate future of NVDA shares prices. While the markets look bleak, one investing expert is calling to buy Nvidia’s dip, saying that now is a bargain time to buy NVDA stock.
Brad Gerstner, founder of tech firm Altimeter Capital, recently told CNBC that he had bought Nvidia (NVDA) stock. Gerstner cited a very strong demand for GPU chips and Trump’s decision to exempt semiconductors from tariffs. As Nvidia is arguably the global leader in the semiconductor industry, Gerstner suggests that this current dip is a can’t-miss opportunity.
“Demand for GPUs is off the charts,” the investor said. “We’re hearing that from Google (GOOG), Tesla (TSLA), and others.” Noting that Trump had exempted chips from tariffs, Gerstner also suggested that semiconductors are likely to continue to get a pass on tariffs going forward.
“If we charged tariffs on the chips we designed and that are being bought” by large U.S. companies, including Meta (META) and Microsoft (MSFT),” we would be shooting ourselves in the foot,” Gerstner added.
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Could Nvidia Stock Rebound Even in a Recession?
On the other hand, this bullish sentiment could change if the US enters a recession. Many economic experts already forecast that one may be coming, if it hasn’t already. A recession would mean even more bearish momentum for the US stock market, especially for companues like Nvidia that rely heavily on foreign markets.
HSBC analyst Frank Lee lowered his rating on Nvidia stock last week. 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.”
