Nvidia Corporation (NVDA) Stock: Trade Fears Overshadow AI Expansion and Robotics Investment

TLDR

Table of Contents

Nvidia stock fell 1% to $141.44 due to trade uncertainty and Trump’s tariff threats against China
CEO Jensen Huang announced new AI partnerships across Europe and plans for $1.5 trillion in AI capacity over the next decade
Nvidia is investing $25 million in robotics startup Skild AI as part of a $4.5 billion Series B funding round
Samsung is also backing Skild AI with $10 million, led by SoftBank’s $100 million investment
Other chip stocks also declined as Wall Street sentiment turned negative on trade policy concerns

Nvidia shares dropped 1% to $141.44 in premarket trading Thursday as investors grew nervous about escalating trade tensions. President Trump’s promise to set new tariff rates within the next two weeks spooked markets already jittery from a recent deal imposing 55% levies on China.

The decline came despite CEO Jensen Huang’s busy European tour promoting the company’s AI initiatives. He delivered a keynote speech at the chip maker’s artificial intelligence developer conference in France on Wednesday.

Huang announced fresh partnerships with European companies during his presentation. The CEO also revealed plans to establish and expand AI technology centers across six countries including Germany, Sweden, Italy, Spain, the U.K., and Finland.

Markets barely reacted to Huang’s European announcements. However, Evercore analyst Mark Lipacis found plenty to like in the CEO’s comments about future growth plans.

Lipacis highlighted two key takeaways from the conference. First, Nvidia plans to build out approximately $1.5 trillion in AI capacity over the next decade. Second, Huang suggested quantum computing might be reaching an inflection point.

The analyst maintains an Outperform rating on the stock with a $190 price target. That implies a 33% upside from Wednesday’s closing price.

Investment in Robotics Startup

Away from the European tour, Nvidia made headlines with a new investment in the robotics sector. The company is reportedly putting $25 million into U.S.-based startup Skild AI as part of a Series B funding round.

#Nvidia, #Samsung plan investments in robotics startup Skild AIhttps://t.co/KeDb17F86N
— CNBC-TV18 (@CNBCTV18Live) June 12, 2025

Samsung Electronics is joining Nvidia in backing the robotics firm with a $10 million investment. SoftBank Group is leading the round with $100 million, valuing Skild AI at around $4.5 billion.

The investment aligns with Nvidia’s push into what it calls “physical AI.” This refers to intelligent robots and autonomous machines that can think and act independently.

Nvidia sees this space as a major long-term growth opportunity. The company is developing specialized chips, software, and services to accelerate the deployment of smart robots across industries.

For Samsung, the Skild AI investment represents a strategic move to stay connected with cutting-edge robotics innovation. The investment also helps Samsung compete with other Korean conglomerates like LG, Hanwha, and Mirae Asset, which have each invested $5 million to $10 million in the startup.

Broader Market Weakness

Nvidia wasn’t alone in Thursday’s decline as the broader chip sector faced pressure. Advanced Micro Devices slipped 0.2% in premarket trading while Broadcom dropped 1.1%.

Intel fell 0.4% and Qualcomm tumbled 1.2% ahead of the opening bell. The weakness reflected broader market concerns about trade policy rather than company-specific issues.

Wall Street’s risk-off mood has challenged the so-called TACO trade theory. This refers to the belief that “Trump always chickens out” when it comes to following through on trade threats.

Recent tariff announcements have shaken that confidence. Investors are now taking a more cautious approach to stocks that could be affected by trade disputes.

Despite Thursday’s decline, analysts remain bullish on Nvidia’s long-term prospects. TipRanks shows the stock has a Strong Buy consensus rating based on 35 Buy recommendations, four Holds, and one Sell from analysts surveyed in the last three months.

The average price target of $172.36 suggests 21% upside potential from current levels. Skild AI expects the new funding to accelerate development of its AI-powered robotics platform as demand for smart automation grows across multiple industries.

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