TLDR
- NVIDIA stock dropped 7.8% on Thursday following Trump’s tariff announcement
- China announced an additional 34% tax on all U.S. goods starting April 10
- NVIDIA shares were down another 3.6% in premarket trading Friday
- Retail investors bought the dip at a “historic pace” with $913 million in inflows
- Jim Cramer claims NVIDIA now trades like a “meme stock” amid market volatility
NVIDIA’s stock continued its downward slide on Friday after a sharp drop the previous day following President Donald Trump’s tariff announcement. The chip giant, whose hardware powers much of today’s artificial intelligence infrastructure, faces new pressure as China announced retaliatory measures.
The semiconductor manufacturer closed down 7.8% on Thursday, leaving the stock at its lowest levels since last summer.
This downturn came amid fears about the impact of new tariffs on the global tech supply chain.
NVIDIA shares fell another 3.6% to $98.19 in premarket trading on Friday. The early morning decline came after China said it would impose an additional 34% tax on all U.S. goods starting April 10.
While semiconductors were exempted from Trump’s initial tariff announcement, the administration noted that products like chips, pharmaceuticals, and lumber would be addressed separately.
This creates ongoing uncertainty for the sector despite the temporary reprieve.
Truist analyst William Stein suggested NVIDIA might be somewhat protected from tariff impacts because of its essential role in AI development.
“Their AI customers appear to be in a race to develop AI and specifically Artificial General Intelligence (AGI) at perhaps any cost,” Stein wrote in a note to investors.
Retail Investors Rush In
Despite the market turbulence, individual investors saw an opportunity in NVIDIA’s price drop.
J.P. Morgan reported retail investor inflows of $913 million into NVIDIA on Thursday alone. This represents a remarkable vote of confidence from smaller investors.
“Despite a sea of red, retail investors stood firm and not only bought the dip but did so at a historic pace,” J.P. Morgan analysts noted.
This influx of retail money comes at a time when many institutional investors are reassessing their positions in technology stocks.
The contrast between retail optimism and institutional caution highlights the divided sentiment about NVIDIA’s near-term prospects.
Some market participants view the current volatility as a buying opportunity, while others fear more downside ahead.
NVIDIA: ‘Trading Like a Meme Stock’
CNBC’s Jim Cramer offered a particularly stark assessment of NVIDIA’s recent price action.
During a recent program, Cramer claimed that NVIDIA “now trades like a meme stock” amid the market volatility triggered by tariff concerns.
“Can we just tell it like it is? It’s a meme — that’s why it’s getting crushed. Let’s not fool around — it’s a meme stock,” Cramer told viewers.
His comments reflect growing concerns about valuation and volatility in AI-related stocks.
Cramer suggested Trump’s policy shift has “terrified the big moneymen” who now fear a rapid economic downturn.
He noted that major investment themes like data center growth and AI suddenly appear “cursed” to some investors.
This sentiment shift comes partly from competitive pressures, with Cramer specifically mentioning Chinese AI company DeepSeek’s advances in computing efficiency.
Other major chip manufacturers also felt the pressure. Advanced Micro Devices (AMD) fell 5.8% in premarket trading, while Broadcom (AVGO) dropped 6%.
The broad-based semiconductor selloff suggests investors are reassessing the entire sector in light of escalating trade tensions.
Trump’s approach to the stock market appears to have shifted since his previous term, according to Cramer.
“Trump doesn’t seem to care about the stock market this time around,” Cramer observed. “He’s not trying to make investors happy… He’s about making these countries bend to his will.”
The market uncertainty comes at a time when NVIDIA has been working to roll out its next-generation Blackwell hardware platform.
Last summer’s stock price dip was linked to concerns about potential delays in this crucial product line.
NVIDIA chips remain the preferred choice for training artificial intelligence models, giving the company a strong competitive position despite the current market turmoil.
China’s retaliatory tariff announcement represents a significant escalation in trade tensions, potentially impacting global supply chains for technology companies like NVIDIA.
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