Nvidia Stock Rises Amid Uncertainty Over Trump’s Tariffs
By Steven Orlowski, CFP, CNPR, April 7, 2025
Shares of Nvidia Corporation (NASDAQ: NVDA) continued their upward momentum this week, defying broader market jitters sparked by renewed uncertainty over former President Donald Trump’s proposed tariffs. As the 2024 election cycle fallout reshapes political and economic expectations, tech investors appear to be betting that Nvidia’s AI-driven growth story will remain intact — even in a more protectionist trade environment.
A Defiant Climb Amid Trade Concerns
Nvidia stock rose more than 3% this week, outperforming the NASDAQ Composite and S&P 500, both of which were weighed down by speculation that a potential second Trump presidency could bring a wave of new tariffs, particularly on Chinese goods and tech components. Trump’s rhetoric in recent public appearances has hinted at a blanket 10% tariff on all imports and a 60% tariff on Chinese goods — a throwback to his 2018–2019 trade war playbook.
This has reignited fears of supply chain disruptions, increased production costs, and retaliatory tariffs from China. Yet, Nvidia’s stock has largely shrugged off the anxiety, bolstered by strong fundamentals, bullish sentiment around AI innovation, and a belief that the company may be insulated from the worst of the policy fallout.
The AI Boom Is Bigger Than Politics — For Now
Nvidia remains the undisputed leader in the AI chip space, with its H100 and upcoming Blackwell series processors powering everything from ChatGPT-style applications to data center infrastructure. Analysts argue that demand for Nvidia's high-performance GPUs — now critical to the operations of global tech giants like Microsoft, Amazon, Meta, and Google — gives the company pricing power and flexibility that few others in the semiconductor sector enjoy.
“There’s no denying that tariffs could add friction to Nvidia’s supply chain,” said Kara Lin, a senior analyst at TechFront Research. “But the global demand for their chips is so strong that customers are likely to absorb some of those costs. And Nvidia’s diversified manufacturing and packaging partnerships — particularly in Taiwan and the U.S. — may help it avoid the worst of the geopolitical fallout.”
A Strategic Hedge: Domestic Expansion
Nvidia has taken steps in recent years to reduce its reliance on China-based suppliers, investing in U.S.-based R&D and benefiting from government incentives through the CHIPS and Science Act. CEO Jensen Huang has emphasized the company’s commitment to reshoring some operations, which could position Nvidia favorably if tariffs return to center stage in 2025.
Moreover, with bipartisan support growing for domestic semiconductor independence, Nvidia could find itself in a rare sweet spot: shielded from both regulatory crackdowns on Big Tech and from the tariff pain facing more China-dependent hardware makers.
Caution Ahead
Still, analysts warn that Nvidia isn’t immune to macroeconomic or political risks. A prolonged trade dispute could eventually ripple through the broader tech supply chain, tightening margins and delaying product rollouts. Any Chinese retaliation — such as restricting access to rare earth minerals or cracking down on U.S. tech companies operating within its borders — could also hurt Nvidia’s long-term growth prospects.
Investors are also watching closely for further clarification on Trump’s actual policy plans and how they might differ if enacted through executive orders, congressional legislation, or global negotiation.
Conclusion
For now, Nvidia’s market-defying strength signals that investors remain confident in the AI revolution — tariffs or no tariffs. But with geopolitics increasingly intersecting with tech innovation, the road ahead may prove more volatile than the recent rally suggests.
Disclosure: The author holds no positions in Nvidia or other securities mentioned in this article at the time of publication.
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