Affected by President Trump's new tariff policy, after the new tariff policy was announced on April 2, 2025, Nvidia's night market fell by more than 5%, and Nvidia's stock price of $110 seemed uncertain again.
Putting aside the impact of tariffs, for retail investors, it is best to lurk at a low level when investing in a company. If you can't lurk at a low level, then add positions when it rises. If you have missed the opportunity to add positions on the way up, it is better to miss it than to make a mistake. After all, it is not easy for retail investors to get the fish tail and then leave safely.
So why advise retail investors to leave?
1. The impact of the Sino-US trade war
The technological competition and trade frictions between China and the United States have brought uncertainty to Nvidia's global business. Especially the sales of Nvidia's products in China. At the same time, the chip export controls imposed by the United States on China have restricted Nvidia from selling its advanced GPU products to the Chinese market, which has affected Nvidia's revenue.
Not only that, this will also affect Nvidia's supply chain in China.
2. Market competition is too fierce
Tech giants' competition for the AI market has become fierce, and more and more technology giants and startups have begun to enter the field of GPU and AI chips, further promoting fierce competition in the market.
Competitors such as AMD, Intel and Google are actively developing their own AI chips and GPU solutions to challenge Nvidia's market dominance. Once a competitor's product makes a major breakthrough, it will be bad news for Nvidia.
3. The emergence of innovative technologies such as DeepSeek
In 2025, when DeepSeek appeared, Nvidia's stock suffered a short-selling. The market is concerned that the improvement of AI model efficiency may reduce its dependence on Nvidia hardware. DeepSeek has proved that it can run complex AI tasks with lower hardware requirements.
So when the next DeepSeek appears, what will the market think?
4. US stocks are now greatly affected by tariffs
For those who buy stocks, there is a saying called going with the flow. At present, Nvidia's stock is in a state of volatility and has not yet chosen a direction. If you buy it at this time, it is not easy for retail investors to stop profit and stop loss. And affected by the new tariff policy, the stock price may react abnormally.
In times of uncertainty, the best way is to wait and see.
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