Nvidia (NASDAQ: NVDA) is edging closer to recapturing the key $100 mark, recovering from a sharp sell-off last week that pushed the chipmaker’s shares below the threshold for the first time since September 2024.
The drop came on April 4, triggered by President Donald Trump’s Liberation Day tariffs, which rattled markets and reignited fears of a full-blown trade war.
Yet despite the recent sell-off, Nvidia shares are showing signs of recovery. After closing at $97.64 on April 7, the stock climbed 3.75% in pre-market trading on April 8 to $101.30, reclaiming the psychologically significant triple-digit level.
Nvidia stock remains down over 27% year-to-date and more than 35% from its 52-week high.
Tariffs reignite fears, but Nvidia’s exposure appears limited
While semiconductors were excluded from Trump’s latest tariff order, the threat of Chinese retaliation has raised the stakes for chipmakers that rely on globally integrated supply chains.
Although Chinese firms are major buyers of Nvidia’s advanced AI chips, these exports may escape the brunt of retaliatory tariffs, as they are manufactured and assembled in Taiwan by contract chipmaker Taiwan Semiconductor Manufacturing Company (NYSE: TSM).
This geographic buffer could reduce the immediate impact, though the threat of long-term geopolitical fallout remains.
There may be a silver lining on the U.S. side as well. According to Bernstein analyst Stacy Rasgon, Nvidia’s disclosures and regulatory filings suggest that many of its AI server shipments to the United States originate from Mexico.
This could offer a critical advantage under the United States-Mexico-Canada Agreement (USMCA), which may help Nvidia avoid the direct impact of the new trade measures, at least in the near term. Rasgon estimates that roughly 60% of Nvidia’s AI servers shipped to the U.S. last year came from Mexico, with another 30% sourced from Taiwan.
Even so, as Nvidia edges closer to the $100 threshold, it appears better positioned than many of its peers to navigate escalating trade tensions.
With strong demand for AI infrastructure, a geographically diversified supply chain, and trade exemptions working in its favor, the semiconductor giant may be on track for a potential recovery.
Featured image via Shutterstock
