Nvidia’s stock price fell 2.3% in early Friday trading despite a major announcement that could boost its reach in the global AI infrastructure market. The chip giant opened up its server platform to rivals, which was seen as a positive move by many analysts. However, some investors remain cautious due to concerns over export restrictions and tariffs.
Nvidia’s new Blackwell platform is already being adopted worldwide and has driven 114.2% revenue growth last year. Despite this, the company faces headwinds from H20 export restrictions to China, which could hit $5.5 billion in licensing fees. Analysts also warn of Section 232 tariffs that could impact near-term sentiment.
The reaction to Nvidia’s announcement highlights how complicated stock movements can be. Great news doesn’t always lead to immediate rallies, and investors need multiple forces to align for a sustained climb. Until those variables move in sync, even a company like Nvidia may struggle to gain traction.
As of now, TipRanks analyst reviews give Nvidia a Strong Buy rating based on 40 reviews, with an average 12-month price target of $164.51, implying a 21.50% upside from the last close at $135.40.
Source: https://www.tipranks.com/news/why-is-nvidia-stock-down-today-despite-massive-ai-news