Nvidia Stock Slides Amid CoreWeave’s Lackluster IPO and Tariff Concerns

Nvidia Corporation NVDA experienced a 3.66% decline in pre-market trading on Monday. This drop followed a disappointing IPO from CoreWeave CRWV and growing uncertainty regarding President Donald Trump‘s proposed ‘Liberation Day’ set for April 2.

Market Response to CoreWeave’s IPO

CoreWeave’s IPO did not meet expectations. The initial public offering was priced at $40 per share, significantly below the anticipated range of $47 to $55. Investors expressed caution despite the strong demand for services associated with AI-driven cloud computing. On its first trading day, the stock closed unchanged at $40. Nvidia, under the leadership of Jensen Huang, holds a 6% stake in CoreWeave and generates at least 15% of the company’s revenue.

Tariff Concerns Affecting Market Sentiment

Additionally, the market is wary of impending reciprocal tariffs—termed “Liberation Day” by Trump—set to begin on April 2. Goldman Sachs has raised the recession risk to 35%, predicting an average of 15% reciprocal tariffs will apply across all U.S. trading partners. The firm also cautioned that the likelihood of a significant equity drawdown has not yet peaked.

see also: Perplexity CEO Aravind Srinivas Addresses Financial Rumors, Affirms AI Search Startup Will Not IPO Before 2028

Nvidia’s Stock Outlook and Analyst Ratings

Despite negative sentiment around AI, Bank of America analyst Vivek Arya maintains a Buy rating for Nvidia, emphasizing its favorable valuation. He noted that the upcoming AI Diffusion Rules, set by former president Joe Biden, has a deadline of May 15, potentially adding to volatility for Nvidia in the near term.

In analyzing various scenarios regarding restrictions on Nvidia, Arya remarked, “We believe the Stock offers an particularly attractive opportunity for one of the most unique, high-quality tech franchises leading the largest and fastest growing secular trends.”

Nvidia Performance Indicators

Benzinga’s Edge Rankings show strong momentum and growth rankings for Nvidia at the 77th and 95th percentiles, respectively. Interested in the performance of other stocks? Click here to explore growth and momentum scores for leading stocks.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.