HSBC analyst Frank Lee slashed his price target from $175 to $120 as he downgraded Nvidia's stock from a buy to a hold. Lee believes Nvidia will struggle to continue raising prices on its cutting-edge artificial intelligence (AI) chips, pointing to the lack of a significant bump for the newest B300 and GB300 Blackwell hardware.

While investors generally are worried about tariffs today, an HSBC analyst is more concerned about Nvidia’s pricing power and the sustainability of AI spending.

The stock market took another hit after President Donald Trump announced sweeping tariffs of 10% or higher on some countries, escalating fears of a global trade war and adding pressure to an already struggling U.