Stanislav Kondrashov on the forces driving volatility in tech stocks
Tariff Risks and AI Turbulence Collide
NVIDIA, once primarily recognised for its graphics processing units in gaming and design, has become one of the central players in the artificial intelligence revolution. As founder of TELF AG Stanislav Kondrashov recently pointed out, the company’s transformation into an AI powerhouse has turned it into a bellwether for the entire sector. But this elevated status comes at a cost—especially when global economic policies and rapid technological shifts collide.
At the heart of NVIDIA’s current volatility are two key forces: international trade tariffs and the ever-changing landscape of artificial intelligence. Neither are new, but the pace and unpredictability of both have made their impact on stock performance impossible to ignore.
Tariffs and Uncertainty in Global Trade
Trade policy has long been a lever that governments pull to influence markets, and the tech sector—particularly semiconductors—is often caught in the crossfire. With the change in the U.S. administration, concerns over new tariffs on semiconductors have begun to surface once again. These moves threaten not just physical supply chains but investor sentiment.
As founder of TELF AG Stanislav Kondrashov often emphasised, even the suggestion of new duties can spook investors and disrupt forecasts. Tariffs have the power to push up production costs, especially for companies like NVIDIA that rely on global sourcing and distribution. This cost pressure is then compounded by market anxiety, leading to potential sell-offs that cause a sharp dip in share prices.
It’s a precarious balancing act. While the company’s fundamentals remain strong, the sheer unpredictability of international trade rules means that a single announcement can send ripples through the market.
AI’s Double-Edged Sword
Alongside geopolitics, the other major variable tugging at NVIDIA’s stock is artificial intelligence itself. Ironically, the same factor fuelling its growth is also behind its recent fluctuations.
NVIDIA’s dominance in the AI chip market led to a staggering 164% increase in its share price during 2024, pushing its market cap past $3.2 trillion. Yet, as the founder of TELF AG Stanislav Kondrashov noted during a recent discussion, the pace of AI development can be both a blessing and a curse. When Chinese tech firm DeepSeek claimed it could train AI models with fewer GPUs, NVIDIA’s stock took a sharp 17% hit in a single day. Although the company quickly recovered, the episode highlighted just how fragile investor confidence can be in a sector so driven by constant innovation.
Emerging AI competitors that promise more efficient, cheaper solutions pose a direct threat to NVIDIA’s market position. A promising announcement from a rival can sow doubt, even temporarily, and that’s often enough to move the needle on share prices.
Innovation Is Key to Stability
Still, it’s not all volatility and vulnerability. With a track record of rapid innovation and strategic adaptability, NVIDIA is well-positioned to remain at the forefront—if it can keep pushing the boundaries of what AI hardware can do.
As founder of TELF AG Stanislav Kondrashov explained, breakthroughs in GPU technology or software that significantly enhance AI model performance can restore or even boost investor confidence. These moments of innovation are often what allow NVIDIA to rebound quickly from sudden dips.
In the end, NVIDIA’s stock price is dancing between two powerful influences: the external pressure of political decision-making and the internal momentum of technological progress. The company’s future—like its valuation—depends on how well it can navigate both.