President-Elect Donald Trump has been widely regarded as the more pro-business candidate in the 2024 elections, and his victory is widely expected to bring continued stock market gains. It is also hoped to bring economic prosperity and rejuvenation to the country.
Despite such an attitude being common, not all companies are likely to benefit from the second Trump presidency, as one of his campaign pledges was the revitalization of the American manufacturing sector through high tariffs.
Additionally, the Republican considers tariffs as a geopolitical weapon and declaratively views them as more beautiful than love, and there are fears they will not be used in a measured and appropriate fashion.
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Nvidia stock could experience headwinds from Trump tariffs
One company that could be at risk from the second Trump presidency is the semiconductor giant Nvidia (NASDAQ: NVDA).
Indeed, as Wedbush’s technology analyst Dan Ives opined ahead of the elections that the tariffs, especially if it is not carefully weighed, could negatively impact the complex global supply chains that big tech relies on.
Specifically, Ives named Tesla Motors (NASDAQ: TSLA), Apple (NASDAQ: AAPL), and Nvidia as the biggest likely losers of the Trump presidency.
Why tariffs are not the only risk for Nvidia after Trump’s victory
There are also geopolitical concerns for Nvidia. On the one hand, Trump can boast of being the only modern American president who has not started new wars.
Simultaneously, he has reignited the age-old ‘chickenhawk’ accusations against Liz Cheney and attempted to present himself as both a strong leader and a peaceful dove.
Still, the record is somewhat more checkered than appears at first glance. During his first administration, President Donald Trump famously came within 10 minutes of starting a war against Iran.
The President-Elect is, in 2025, set to inherit a seemingly perpetually expanding war in the Middle East, a war whose hallmark feature is Israel’s continuous crossing of America’s red lines and which could, indeed, lead to a major regional war.
The previous Republican administration also set the stage for the withdrawal from Afghanistan and left it to the Biden White House to execute and bear the political costs.
The checkered geopolitical history, as seen in the few selected and famous examples, could be of great concern for Nvidia stock investors.
On the one hand, the vital trade supply of the Suez Canal remains at risk of closure as long as the conflict in the Middle East is ongoing.
On the other hand, Nvidia’s production reliance on Taiwan Semiconductor Manufacturing (NYSE: TSM), ensures it remains at risk from a more assertive China – China that may or may not ‘play ball’ with Trump’s expected hardline stance.
This is how NVDA shares reacted to Donald Trump’s victory
Whatever the long-term picture, Trump’s image as a business candidate is already shining in NVDA stock performance. Like many other firms – Tesla and Trump Media (NASDAQ: DJT) being the prime examples – Nvidia shares moved higher as their immediate reaction to the elections.
In the last 24 hours, the semiconductor giant’s stock is up 2.74% to Nvidia price today, at press time, of $143.77. Such a rise ensures that the chipmaker is 8.19% in the green in the last week of trading, and 199.08% since the start of 2024.
Featured image via Shutterstock
