Entering the year, there were few companies that had the kind of expectations Nvidia had. However, two months into 2025, it has failed to live up to that high bar. Now, all eyes are on what could be causing the volatile price movement. As Nvidia (NVDA) dropped another 9% this week, experts say there is one key reason why.
There had always been debates on the company’s ability to continue outperforming expectations. Although it has done just that in its Q4 earnings report, traders did not react the way many would expect out of its stellar financials. Yet, there may be one thing holding the stock back.
Also Read: Nvidia (NVDA) Sets Earnings Record, So Why Hasn’t The Stock Followed?
Nvidia Falls Monday as Experts Say Stock Could Struggle for One Key Reason
With the company’s Q4 earnings set to be revealed, we projected that Wall Street would likely not flock to the company. Indeed, with the bar continually raised, the exceptional financial report saw the stock begin to fall in response. Now the market is looking for reasons why.
On Monday, Nvidia (NVDA) shares fell 9%, as experts are pointing to one key reality that is driving the decline. Moreover, there is now concern regarding whether it will be able to navigate the development that could hinder further gains over the next ten months.
Also Read: Nvidia (NVDA) Stock Falls 8% Following Poor Q1 2025 Outlook
According to CNBC, the stock drop correlated with US President Donald Trump confirming tariffs on both Mexico and Canada. Previously, Trump had postponed the tariffs for one month. However, that timeline is up, and it knocked a total of $265 billion off of Nvidia’s market value.
Since Wednesday, when it first reported Q4 earnings, NVidia is down more than 13%. This has taken place despite revenue jumping 78% from last year to reach the $39 billion mark. In its most recent earnings call, the AI chipmaker addressed tariffs. “Tariffs, at this point, it’s an unknown until we understand further what the US government’s plan is,” Nvidia CFO Colette Kress said to investors.