Nvidia (NVDA -1.04%) declined 0.97% on Tuesday to close at $178.26, retreating modestly from recent highs as semiconductor stocks faced pressure amid fresh trade policy concerns. Trading volume came in at 152.2 million shares, about 21% below its average.
Broader markets were also lower, with the S&P 500 down 0.49% and the Nasdaq Composite falling 0.65%. Traders reacted to signals that former President Donald Trump may soon propose increased tariffs on semiconductor imports in a bid to boost domestic manufacturing.
Nvidia's peers were similarly under pressure. Advanced Micro Devices dropped 1.40%, while Broadcom lost 1.61%, extending a multi-day pullback across the chip sector.
Despite the red close, institutional confidence in Nvidia remained intact. Cathie Wood's ARK Autonomous Technology & Robotics ETF and ARK Space Exploration & Innovation ETF disclosed purchases of 23,211 Nvidia shares -- a combined investment of roughly $4.2 million. Nvidia now makes up approximately 2.7% of each ETF.
Looking ahead, analysts at Bank of America reiterated a $220 price target, citing resilient demand for Nvidia's Blackwell GPUs and continued strength in AI infrastructure spending. While shares are consolidating just below their record high, momentum remains strong heading into the next earnings cycle.
Market data sourced from Google Finance and Yahoo! Finance on Tuesday, August 5, 2025.
