Nvidia (NVDA) stock declined over 3% in premarket trading on Monday, closing the first quarter on a sour note. Investor sentiment weakened amid rising concerns over President Donald Trump’s upcoming “Liberation Day” on April 2, which marks the start of new trade tariffs. Adding to the pressure, Nvidia-backed AI company CoreWeave had a disappointing initial public offering (IPO), further dampening market confidence.
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Nvidia Stock Signals Investor Doubts
Year-to-date, NVDA stock is down by 18%. Nvidia, a key player in the AI revolution, has seen massive investor enthusiasm in recent years, fueled by expectations of soaring demand for its advanced chips. However, the decline signals increasing skepticism that the AI-driven earnings boom may have been overstated, raising doubts about its long-term sustainability.
Disappointing CoreWeave’s IPO
CoreWeave made its public market debut on Friday, but its shares were priced lower than expected. Meanwhile, CoreWeave stock ended the day flat. The lackluster start was particularly disappointing for Nvidia, which had invested $250 million in CoreWeave shares at the IPO price of $40 per share.
Notably, CoreWeave generates all its revenue from renting out cloud-based AI servers powered by Nvidia’s chips and counts Microsoft (MSFT) as its biggest customer.
NVDA Stock Slips amid Broader Market Jitters
Nvidia’s stock also faces pressure amid broader market concerns ahead of Trump’s looming tariff deadline. Investors grew wary that such measures could strain the economy, triggering a global stock slump.
Semiconductor stocks were hit particularly hard. Taiwan Semiconductor Manufacturing’s U.S.-listed shares (TSM) dropped 2.4%, while Dutch chipmaker ASML (ASML) fell 2.6%, and Intel (INTC) declined 2.4%.
Is Nvidia a Good Stock to Buy Now?
According to TipRanks, NVDA stock has received a Strong Buy rating based on 39 Buys and three Holds in the last three months. At $176.54, the Nvidia average share price target implies a 61% upside potential.