Speaking on CNBC recently, Chris Caso, a senior analyst at Wolfe Research, said that “the AI space and tariffs in particular are… the best places to hide right now.”
More of Caso’s Comments on NVDA
Nvidia’s valuation is attractive, and the tech giant’s recently announced decision to manufacture its upcoming chips at Taiwan Semi’s (TSM) factories in Arizona “is real,” since the facilities can manufacture those semiconductors, Caso stated.
Similarly, NVDA’s plan to build some of its AI servers in the U.S. “makes absolute sense.” In light of these devices high profit margins, NVDA will not be badly hurt by the added cost of manufacturing them in America, Caso explained.
Additionally, NVDA can avoid tariffs by manufacturing a portion of its products in Mexico, the analyst suggested.
Caso’s Outlook on the Impact of Tariffs on the Chip Sector
Tariffs on consumer electronic products would meaningfully lower the demand for chips, Caso indicated. However, tariffs on the chips “would be less of a problem” because Chinese manufacturers put many chips into consumer electronic products, he stated.
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This article is originally published at Insider Monkey.
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