$NVIDIA(NVDA.US) For Nvidia, this is clearly an overreaction. Expect a big rally on Monday. Here are my arguments.

1. The mainland tariff increase has little impact on Nvidia's sales in China. For Nvidia, its main products are data center GPUs rather than gaming GPUs. Gaming GPU business only accounts for 7% of Nvidia's revenue, and data centers won't switch to other chips just because of a 30% price hike. The reason is simple: CUDA ecosystem.

2. Nvidia has gone through multiple rounds of policy adjustments. With a P/E ratio around 30, strong profitability, and irreplaceability, it is currently far undervalued.

3. Trump's tariff policy won't last long. Against the backdrop of global tariff increases on the US, American manufacturing will face even more severe blows. Moreover, Trump's latest tariff hike seems not aimed at retaining US manufacturing but at stimulating inflation to dilute US national debt.