### Nvidia's Stock Dips Amid Trade War Concerns and Mixed Earnings Reactions

Nvidia's stock experienced a decline just before Thanksgiving, dipping below its 50-day average. On Wednesday, the stock was down by 1.2%, closing at $135.34. Analysts have pointed to investor reactions to Nvidia's recent earnings report, which presented a good-but-not-great outlook, as a contributing factor to the decline.

Dan Ives, an analyst from Wedbush, mentioned to Investor's Business Daily that the current market behavior reflects a digestion period post-earnings, coupled with apprehensions regarding potential new tariffs related to a looming trade war with China. Nvidia, renowned for its AI chip prowess, delivered robust third-quarter results. However, while the outlook exceeded expectations, it left many on Wall Street feeling underwhelmed.

This week, concerns over the implications of a potential trade conflict with China resurfaced. President-elect Donald Trump announced his intention to implement significant tariffs on imports from China, Canada, and Mexico beginning his first day in office. Analyst Stacy Rasgon from Bernstein Research noted that while direct impacts on semiconductor imports into the U.S. from these nations might be minimal, broader actions could have significant repercussions on the semiconductor industry as a whole.

Ray Wang from Constellation Research acknowledged that while a trade war with China has become a pertinent concern, the fears remain largely speculative at this stage. He noted Nvidia's continued industry dominance, emphasizing that the company maintains a substantial lead over competitors. Wang expressed that unless a significant breakthrough occurs within China regarding GPU technology, or unforeseen geopolitical events transpire, Nvidia's market position remains robust.