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Nvidia (NASDAQ:NVDA) jumps as Wedbush calls U.S.China tariff cut best case scenario for tech.
Over the next 90 days, tariffs plunge by 115%, with U.S. duties on Chinese goods falling from 145% to 30% and China trimming its 125% levy to 10%, setting the stage for broader negotiations, Wedbush Securities says. Analysts describe it as a dream scenario that accelerates talks toward a comprehensive deal, underpinning hopes for fresh highs in semiconductor names and megacaps alike.
This is clearly just the start of a broader and more comprehensive negotiations, and we would expect both these tariff numbers to move down markedly over the coming months as deal talks progress, Wedbush wrote, noting that chip restrictions affecting Nvidia and peers remain to be tackled. The firm believes easing these duties could unlock meaningful upside across tech stocks, with the tariff window serving as a catalyst for renewed buying momentum.
Why it matters: Faster cuts could slash component costs, improve supply-chain visibility and fuel multiple expansion in a sector long shadowed by policy risk. Investors will be watching how quickly Washington and Beijing translate this 90-day pact into firmer commitments.
This article first appeared on GuruFocus.