Nvidia Corporation NVDA dropped 3.66% during the Monday pre-market trading session following CoreWeave‘s CRWV disappointing IPO and uncertainty surrounding President Donald Trump‘s ‘Liberation Day’ on April 2.
What Happened: The chipmaker dropped during the pre-market session amid the AI gloom surrounding Nvidia-backed CoreWeave’s lackluster IPO. CoreWeave set its initial public offering price at $40 per share, falling short of the anticipated $47 to $55 range, reflecting investor caution despite strong demand for AI-driven cloud computing services. Its shares closed flat at $40 on its first trading day on Friday. The Jensen Huang-led chipmaker holds a 6% stake and generates at least 15% of CoreWeave’s revenue.
Furthermore, the market is gearing up for the impending reciprocal tariffs, dubbed “Liberation Day” by Trump, scheduled for April 2nd. Goldman Sachs recently increased the recession risk to 35% and forecasted an average of 15% reciprocal tariffs across all U.S. trading partners. The firm also cautioned that the equity drawdown probability is yet to reach its zenith.
SEE ALSO: Perplexity CEO Aravind Srinivas Shuts Down Financial Rumors, Says AI Search Startup Has ‘No Plans Of IPOing Before 2028’
Why It Matters: Despite the weak sentiment surrounding AI, Bank of America analyst Vivek Arya maintains a Buy rating on Nvidia, citing an attractive valuation ahead. AI Diffusion Rules, introduced by former president Joe Biden, have a deadline of May 15, ahead of which Nvidia could stay volatile, Arya stated in the note.
After analyzing various scenarios on the potential impact of restrictions on Nvidia, Arya states, “We believe the stock is providing a particularly attractive opportunity for one of the most unique, high-quality tech franchises leading the largest and fastest growing secular trends.”
Benzinga’s Edge Rankings highlight strong momentum and growth rankings for Nvidia in the 77th and 95th percentiles, respectively. Curious how other stocks stack up? Click here to uncover growth and momentum scores for top stocks.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Momentum–
Growth–
Quality–
Value–
Market News and Data brought to you by Benzinga APIs