On Wednesday, US President Donald Trump announced a 90-day pause on his Liberation Day tariff plan. The pause caused stocks to rebound from their week-long slump by nearly double digits. In the last 24 hours, Nvidia (NVDA) shares are down 9%, correcting from their huge climb following the tariff pause announcement. With more uncertainty around the future of the US economy than ever before, stock investors are curious if shares like NVDA can rebound back to their pre-tariff values.
Last November, Nvidia stock established a new ATH of stock value amid a market climb. Experts projected that NVDA to climb towards $200 in the first months of 2025, but the stock went in the opposite direction. Year-to-date, Nvidia stock is down 22%. Now that tariffs have paused, investors hope that the stock will finally pick up the pace. Could NVDA finally reach $200?
Can Nvidia Still Reach $200 In 2025?
Amid the tariff threats last week, Brad Gerstner, founder of tech firm Altimeter Capital, told CNBC that he had bought Nvidia (NVDA) stock. Gerstner cited a very strong demand for GPU chips and Trump’s decision to exempt semiconductors from tariffs. As Nvidia is arguably the global leader in the semiconductor industry, Gerstner suggests that this current dip is a can’t-miss opportunity.
“Demand for GPUs is off the charts,” the investor said. “We’re hearing that from Google (GOOG), Tesla (TSLA), and others.” Noting that Trump had exempted chips from tariffs, Gerstner also suggested that semiconductors are likely to continue to get a pass on tariffs going forward.
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“If we charged tariffs on the chips we designed and that are being bought” by large U.S. companies, including Meta (META) and Microsoft (MSFT),” we would be shooting ourselves in the foot,” Gerstner added.
Even as tariffs were paused for some countries, Trump doubled down on Chinese imports, raising levies from 104 percent to 125 percent. That will remain a threat to Nvidia in the future. Indeed, much of the firm’s supply chain and the broader AI ecosystem depend on advanced manufacturing in Asia, particularly Taiwan and South Korea. Thus, there is still uncertainty that even with heightened demand, profits will still be low due to the rising cost coming from Chinese Tariffs.