Nvidia suppliers brace for potential 25% tariffs on goods imported from Mexico under new trade policy

Billionaire Masayoshi Son, founder of Japanese multinational tech firm Softbank, is set to meet Indian Prime Minister Narendra Modi, as Son eyes more artificial intelligence and technology bets in the third-largest economy in Asia. According to Reuters, Son has already met Mukesh Ambani, the richest man in the South Asian country and chief of prominent conglomerate Reliance Industries, with the duo discussing potential artificial intelligence opportunities in India. CNBC has reported that Softbank is also exploring an additional $1.5 billion investment in AI startup OpenAI.

Meanwhile, xAI, the AI startup of billionaire Elon Musk, is considering the release of a standalone consumer application following the success of ChatGPT by OpenAI, according to The Wall Street Journal. The application would be powered by the Grok bot that the startup is marketing. Per the Financial Times, the app will likely arrive after xAI closes its next funding round, which could reach $5 billion and value the company at $50 billion. If successful in raising this amount, xAI would take total raised funding to $11 billion.

AI stocks examined in this report were selected by combing through news articles, stock analysis, and press releases, with particular attention to stocks popular among hedge funds. The selection strategy is based on research showing that the top stock picks of the best hedge funds can outperform the market. A quarterly newsletter employing this strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points.

NVIDIA Corporation, which provides graphics, computing and networking solutions, has recently faced supply chain considerations following tariff discussions. On November 27, Nikkei Asia reported that NVIDIA suppliers were scrambling to prepare for the possibility that Donald Trump will follow through on his vow to slap a 25% tariff on all goods imported from Mexico, a country that has emerged as a key production hub for server companies in the US that supply NVIDIA. Per the report, some companies are ramping up production capacity on American soil while others are pausing planned construction in Mexico.

NVDA ranks fourth on the list of trending AI stocks on latest ratings and news.