Nvidia stock sheds $72B as tariff fears fuel tech pullback
The broader semiconductor sector has been hit by news of new U.S. tariffs on Chinese tech-related imports
As of April 11, 2025, Nvidia Corporation (NASDAQ: NVDA) is trading at $107.57, reflecting a 5.9% decline from the previous session.
This pullback comes after an explosive rally on April 9, when the stock surged nearly 19% in a single day, adding approximately $440 billion in market capitalization—marking the largest one-day gain ever recorded for a publicly traded company. This extreme price action reflects both the intense investor enthusiasm surrounding Nvidia and the broader market’s current volatility.
Despite the recent decline, Nvidia remains in a strong uptrend from a technical standpoint. The 50-day moving average is currently at $98.50, while the 200-day moving average stands at $89.20. The price remains comfortably above both, indicating solid medium- and long-term bullish momentum. The Relative Strength Index (RSI) has cooled to around 65 after briefly entering overbought territory, suggesting that the stock is undergoing a natural consolidation phase rather than a reversal.
NVDA stock price dynamics (February 2025 - April 2025). Source: TradingView.
Nvidia finds immediate support at $102, which coincides with a former resistance zone now turned into a technical floor. Should selling intensify, a deeper correction could take the stock toward the 50-day MA at $98.50. Below that, the next major level is the 200-day MA at $89.20. On the upside, resistance is likely at $112, the recent intraday high. If broken, Nvidia could target $118, a level associated with the March price range prior to its last pullback.
Tariffs shake tech, but AI demand cushions Nvidia
The broader semiconductor sector has been hit by news of new U.S. tariffs on Chinese tech-related imports, including a 125% levy on some semiconductor goods. This geopolitical tension is reviving concerns about supply chain disruptions and escalating trade wars. While Nvidia is not directly affected by the tariffs, the macro overhang is contributing to heightened volatility across the chip sector.
Still, Nvidia remains a standout name in the AI hardware ecosystem. At the 2025 GTC (GPU Technology Conference), CEO Jensen Huang laid out an aggressive roadmap that includes the launch of the Blackwell Ultra AI platform in the second half of 2025 and the Vera Rubin GPU line stretching through 2027. Huang reiterated Nvidia’s strategic vision of powering the global AI buildout, estimating that investments in AI-focused data centers could exceed $1 trillion in the coming years.
Analysts continue to endorse Nvidia as a top-tier growth play. Citi’s Atif Malik maintained a Buy rating and a $163 price target, noting Nvidia’s unmatched position in AI infrastructure. Raymond James analyst Srini Pajjuri called Nvidia his “top pick” in semiconductors, citing execution strength and a robust tech pipeline. These endorsements have helped bolster investor confidence despite short-term macro concerns.
Support zones in focus as Nvidia stabilizes
Looking ahead, Nvidia is likely to trade within a broad consolidation range as markets digest recent macro developments and the stock's meteoric rise. If support at $102 holds, a push toward the $112 resistance zone is expected, with potential for an extension to $118 if positive sentiment returns and broader market conditions remain supportive.
Conversely, a sustained move below $98.50 would increase downside risk, targeting the 200-day MA around $89.20. However, this level is expected to act as strong structural support due to long-term bullish fundamentals. Given Nvidia's AI-driven growth narrative and institutional backing, pullbacks are more likely to be viewed as entry opportunities rather than the start of a bearish reversal. Near-term price action is expected to remain volatile, but the underlying trend continues to favor the bulls.
Earlier this week, escalating U.S.-China trade tensions reignited fears of supply chain disruptions in the semiconductor industry, following the Trump administration’s 104% tariff on Chinese imports and Beijing’s 84% retaliatory tariff. These developments have deepened concerns about long-term chip supply security and weakened sentiment in the sector, as China remains a key consumer market.
