We recently published a list of 10 Stocks Everyone is Talking About After Trump’s New Tariffs. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks everyone is talking about after Trump’s new tariffs.
Countries are beginning to react to President Donald Trump’s new reciprocal tariffs and analysts believe things might not go according to the White House’s expectations, with American workers and consumers likely to see the impact of new duties.
Fred Kempe from Atlantic Council said in a latest program on CNBC that many countries can impose strong retaliatory tariffs against the US.
“I think we have to recognize what’s going to be implemented is going to be the highest effective tariff tariff rate since the 1930s. What also happened in the 1930s is you had new trading blocks, you had new trading partners finding their way to each other, and you could find that that happens as well. And let’s not forget what also happened in the 1930s afterwards. We hope that’s not going to happen now, but, um, you know, a trade war just really never serves, in the end, global stability, global peace.”
Kempe said investors failed to realize that Trump does not “care” about falling stock prices as he is looking to change the global trade system.
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For this article, we picked 10 stocks Wall Street analysts are talking about. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 193
Bernstein Research Senior analyst Stacy Rasgon said in a latest program on CNBC that he liked Jensen Huang’s commentary at the GTC event and believes NVIDIA Corporation (NASDAQ:NVDA) will see strong demand for its chips going forward. The analyst answered a question about the future of the stock if a recession hits:
“Clearly, the AI spending is happening. There are business models, cost reductions, revenue models that are starting to get built on this stuff. There’s this whole like long-term trend that he talks about as you move from sort of more traditional computing to accelerated computing, which is a massive cost saver. So, there are other drivers. Again, in a recession, you want to save cost and dial back, and these are investments I think they can pay off. But I mean, if we go into like a significant like global or local recession, I don’t think anything in semis does all that well. At least Nvidia does have some of these structural drivers, and you know, I’ve said this before, but it’s not even expensive. You know, it’s like in the low 20s if the current numbers are low 20s price support earnings if the current numbers are close to being correct. And like there’s a lot of other things out there that are much more expensive that I think are likely to get hit just as bad or worse from a fundamental standpoint in a recessionary environment.”
The market will keep punishing Nvidia for not coming up to its gigantic (and sometimes unrealistic) growth expectations. About 50% of the company’s revenue comes from large cloud providers, which are rethinking their plans amid the DeepSeek launch and looking for low-cost chips. Nvidia’s Q1 guidance shows a 9.4% QoQ revenue growth, down from the previous 12% QoQ growth. Its adjusted margin is expected to be down substantially as well to 71%. The market does not like it when Nvidia fails to post a strong quarterly beat. The stock will remain under pressure in the coming quarters when the company reports unimpressive growth.
Nvidia is facing challenges at several levels. Competition is one of them. Major competitors like Apple, Qualcomm, and AMD are vying for TSMC’s 3nm capacity, which could limit Nvidia’s access to these chips. Why? Because Nvidia also uses TSMC’s 3nm process nodes. Nvidia is also facing direct competition from other giants that are deciding to make their own chips. Amazon, with its Trainium2 AI chips, offers alternatives. Trainium2 chips could provide cost savings and superior computational power, which could shift AI workloads away from Nvidia’s offerings. Apple is reportedly working with Broadcom to develop an AI server processor. Intel is also trying hard to get back into the game with Jaguar Shores GPU, set to be produced on its 18A or 14A node.
Parnassus Growth Equity Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) continued to lead the market for graphics processing units and semiconductor chips needed to power AI applications. Because our position in the stock is an underweight relative to the nearly 12% of the benchmark it now represents, it was a relative detractor for the year.”
Overall, NVDA ranks 2nd on our list of best mid cap growth stocks. While we acknowledge the potential of NVDA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.