Famed investor Jim Cramer says Nvidia Corp (NASDAQ: NVDA) has become a “meme stock” following its warning of a massive hit to earnings last week. 

According to the former hedge fund manager, investors should lower their exposure to NVDA as US export restrictions could lead to more pain for the AI chips giant moving forward. 

Cramer has long been a proponent of Nvidia stock. However, “you can’t own it like you used to” amidst tariffs and the added export restrictions on semiconductors in 2025, he added. 

The aforementioned headwinds have already pushed NVDA shares down more than 30% this year.

What new export restrictions on H20 mean for NVDA 

Earlier in April, the Trump administration slapped a new requirement of a license for Nvidia to be able to export its renowned H20 chips to several destinations, including China. 

With these new restrictions, the US wants to further curtail Beijing’s access to advanced chips that it’s concerned could be used to build highly sophisticated military systems. 

For NVDA, this recent development could mean a significant growth slowdown, given that H20 generated as much as $15 billion in revenue for the chipmaker in 2024. 

In fact, the Nasdaq-listed firm has already warned that the new export restrictions could result in up to a $5.5 billion quarterly charge. 

Despite emerging challenges and the tariffs-driven rout in the US tech stocks this year, Nvidia stock is still up more than 25% versus its 52-week low at the time of writing. 

US wants to maintain its AI supremacy

Note that China’s DeepSeek also used Nvidia’s H20 chips to develop its R1 model that rivals the most powerful AI models but at a fraction of the operational cost. 

So, the US government’s new export restrictions are more broadly aimed at maintaining America’s supremacy in artificial intelligence. 

Even before taking office on January 20th, President Trump had confirmed plans of committing to making the US the world’s capital for emerging technologies, including crypto and AI. 

Amidst such a backdrop, famed investor Jim Cramer has recommended taking a cautious stance on Nvidia shares in the near term. 

Wall Street disagrees with Cramer on Nvidia stock

While things have evidently turned more challenging, not everyone on Wall Street agrees with the Mad Money host on NVDA shares. 

The consensus rating on Nvidia stock remains at “buy” in April.

Analysts currently have an average price target of about $165 on the AI stock, which translates to a nearly 65% upside from current levels. 

They remain bullish on the multinational despite near-term challenges as it continues to be the only game in town for artificial intelligence – a market that Statista forecasts will grow at a compound annualised rate of more than 27% through the end of this decade. 

Additionally, NVDA stock pays a dividend yield of 0.039%.

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A fortnight ago, investors were counting down the hours to President Trump’s announcement of ‘reciprocal tariffs’. Global stock indices, led by the US majors, were already exhibiting evidence of investor concern.

The Dow and the Russell 2000 (a less popular stock index, but an important indicator of the mood towards US mid-cap, domestically-focused corporations) had both peaked in November.

The S&P 500 and NASDAQ, which both contain a significant weighting towards the tech giants, hit their all-time highs in mid-February. 

Since then, all the US majors sold off, taking them back below levels last seen just after Trump’s election victory on 5th November. They had a mild recovery in the latter half of March.

But it was evident that investors were becoming wary. The feeling was that tariffs could go either way. President Trump could announce a modest baseline tariff on those countries he believed were acting ‘unfairly’.

Or he could do something worse. In the end, he did something much, much worse. 

Most tariffs went through a fairly rapid ‘process’ of being postponed, altered and retargeted. But given what has happened since, it looks as if the 10% baseline tariff across exports from the US’s trading partners is much more in line with what the markets were hoping for.

Although in the absence of a string of successful country-by-country negotiations, these could revert to the original reciprocal rates in three months’ time. 

But one thing now looks certain, and that is that the Trump administration’s real target in all this brouhaha is China.

Add in the bellicose rhetoric and thin skins on both sides, and the tariff tiff has morphed into an all-out trade war. Investors are now trying to work out if this can be resolved, and if so, how long it could take.

Analysts have all come up with opposing theories over which side stands to be worst affected, and who is most likely to blink first. One argument goes that President Trump’s readiness to water down most tariffs is a sign of weakness. Maybe.

Although the fact that he ramped up China’s levies to 145% suggests not. It’s also said that China’s authoritarian regime is in a better position to accept hardships on its citizens in a way that Trump can’t.

But China’s economy is in a poor state, no matter what the data says, and its property implosion means that it can’t rely on its domestic market to replace its export market. 

On the other hand, it looks as if the Trump administration may have panicked when US Treasuries went into meltdown. It could accept a sell-off in equities, but not a threat to the world’s ultimate safe-haven asset.

The yield on the 30-year yield had its biggest weekly jump since the 1980s, even as the US dollar was in freefall. It looked as if something had burst. 

Was China to blame? It seems unlikely that they were wholly responsible for the bond market sell-off. It would largely be self-defeating given how much US government debt they own.

Also, such a move would push up the value of the yuan, which would only make life more difficult for Chinese exporters.

It seems more likely that the dislocation between the dollar and US Treasuries was largely due to massive deleveraging by hedge funds and the shadow banking system. 

Markets were a touch calmer in the week leading up to Easter. But it doesn’t feel like the crisis has peaked yet.

The egos involved are just too big, and the stakes far too high. At some stage, this will be resolved. But risk markets look likely to suffer a lot more pain before things get back on a more even keel.  

(David Morrison is a Senior Market Analyst at Trade Nation. Views are his own.)

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3M stock price has crashed in the past few weeks as investors assess the impact of Donald Trump’s tariffs on its business. After peaking at $155 earlier this year, it has bottomed to $130, down by 17% from its highest point this year. This article examines whether the MMM stock is a good investment ahead of the company’s earnings announcement on Tuesday. 

3M has faced challenges in the past few years

3M is a top industrial company that manufactures products used in several industries. Its top divisions are industries like safety and industrial, transportation and electronics, and consumer. 

3M is known for products like adhesives and tapes, safety glasses and eyewear, sandpaper, abrasives, and other sponges and pads. 

The company has faced numerous challenges in the past. For example, it was forced to pay $12.5 billion for manufacturing forever chemicals and $6 billion for selling faulty earplugs to the US military. Before that, Minnesota fined it $850 million for PFAS disposal in the state. 

3M has done a lot to remedy its business and boost its growth. It replaced its then CEO with William Brown, a highly experienced executive who helped to turn L3Harris around. 

Brown has adopted a cost-cutting approach in an effort to boost profitability. He has also pledged to focus on innovation, especially in his goal to end the reliance on forever chemicals.

At the same time, Brown has talked about the need for expanding its solutions since most of 3M products are no longer growing as fast.

The most significant corporate event that 3M made was spinning off its healthcare business into an independent firm known as Solventum, that is currently valued at over $11.6 billion. It also sold a stake in Combi Packaging Systems to SIAT Group.

The current main challenge is that the firm is facing potentially slow growth due to Donald Trump’s tariffs. These levies will affect its supply and demand side. Demand will be impacted as it is forced to boost prices of its products. In the supply side, the company will see higher costs.

Read more: 3M is a ‘growth stock’ after Q4 earnings, says Cramer: should you invest?

3M earnings ahead

The next catalyst for the 3M stock price is its upcoming financial results scheduled on Tuesday. These numbers will be the first ones after it delivered its short and medium-term forecasts. It hopes that its organic sales will outperform the macro in 2026 and 2027, and that its operating margin will get to 25% by 2027. It also hopes to have a 100% free cash flow conversion.

The most recent results showed that its sales rose by 2.1% YoY to $5.8 billion, while the EPS rose by 2% to 1.68. Its free cash flow rose to $1.3 billion. Altogether, 3M’s annual sales rose by 1.2% to $23.6 billion. 

The average analyst estimate is that 3M’s quarterly sales will be $5.73 billion, while its EPS will be $1.77 billion. Analysts expect that its annual revenue and EPS will be $23.9 billion and $7.76.

3M stock price analysis

The daily chart shows that the 3M share price peaked at $154.85, forming a triple-top chart pattern. It has dropped below the neckline at $141, its lowest swing on March 7. 

3M shares have also moved below the 50-day and 200-day Weighted Moving Averages (EMA). Oscillators like the Relative Strength Index (RSI) and MACD indicators have all pointed downwards.

Therefore, the stock will likely continue falling as sellers target the key support at $122.13, its lowest point this year. A drop below that level will point to more downside to the support at $110.

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As luxury companies navigate the choppy waters of a global economic slowdown, France’s Hermès has once again found stability in its most iconic creations—the Birkin and the Kelly handbags.

The company reported a 7% rise in sales for the first quarter of 2025, narrowly missing analysts’ expectations, yet confirming its status as one of the sector’s most resilient players.

While rivals wrestle with shrinking demand and pricing pressures, Hermès’ timeless strategy and unwavering appeal to ultra-wealthy clientele have helped it stay the course, even as uncertainty looms over tariffs and China’s property-linked slowdown.

Birkin and Kelly bags drive store traffic and cross-category sales

The Birkin bag—named after British actress Jane Birkin—and the Kelly—immortalized by Grace Kelly—have long been regarded as the crown jewels of the Hermès portfolio.

Their reputation as status symbols has only deepened in recent years, with collectors willing to spend tens of thousands of dollars and wait months, or even years, to acquire them.

In a downturn, they do more than just sell well.

They function as anchor products, pulling customers into the store and encouraging purchases in other categories, including scarves, jewellery, and ready-to-wear.

Known in luxury circles as “pre-spend,” shoppers often build a purchasing history with the brand through smaller-ticket items, such as $270 silk ties or $40,000 bracelets, in hopes of eventually being offered a Birkin.

This strategy remains highly effective.

Even as demand in Mainland China showed signs of strain in the first quarter, Hermès posted growth across all regions, including the Americas, where low stock levels in early 2025 were offset by strong March sales.

Management noted that trends have remained positive through early April.

China’s slowdown and tariff threats fail to shake investor confidence

Hermès’ performance in China—a region facing ongoing consumer caution—was notably subdued.

Yet it stood out relative to competitors, many of whom have seen significant slowdowns across Asia.

In the US, where tariffs on European goods are set to increase by 10% beginning May 1 under the Trump administration, Hermès remains confident.

Management believes it can pass those costs on to American consumers—an assertion few other luxury houses can make with such confidence.

That confidence stems from the brand’s unparalleled pricing power.

In a note last week, Jefferies analysts reiterated that Hermès is well-positioned to outperform its peers, describing the company as a “safe haven” amid ongoing turbulence in the luxury sector.

The analysts maintained a “relative preference” for Hermès due to its elite customer base and consistent demand patterns.

Made to last: low production, high margins

A key element of Hermès’ resilience lies in its ultra-controlled production model.

The brand makes no more than 70,000 Birkin bags per year, each handcrafted by a single artisan over 18 to 24 hours.

Kelly bags take a similarly meticulous approach, often requiring 14 to 20 hours of work by a single leatherworker.

This artisanal method, combined with limited availability and no discounting—even during recessions—has helped Hermès maintain some of the highest margins in the luxury industry.

While rivals like Kering have occasionally relied on markdowns to clear stock, Hermès has never discounted its handbags, reinforcing their status as investment-grade fashion items.

The brand’s careful control over supply not only maintains exclusivity but also drives resale value.

Collectors treat the bags like fine art or rare watches, with many appreciating in value over time.

Even secondhand, a Birkin can command a premium of 30–50% over its original retail price, especially in hard-to-find colours or materials.

Wealthy clientele insulates brand from macro shocks

Unlike mass-luxury players, Hermès caters to the global elite.

According to Bain & Co., the top 2% of luxury buyers account for over 40% of sector spending, and Hermès is disproportionately exposed to this tier.

These consumers are relatively insulated from rising interest rates or cost-of-living concerns, meaning their discretionary spending patterns hold firmer when the economy turns sour.

That dynamic was evident in Hermès’ full-year 2024 results, which showed a 17% rise in sales at constant exchange rates—far outpacing the industry.

Even in the US, where demand softened after February due to tariff speculation, Hermès saw signs of recovery in March.

The quiet giant of luxury continues to outperform

While conglomerates such as LVMH pursue high-profile acquisitions and expand into new categories, Hermès remains focused on its narrow but highly profitable core.

It avoids celebrity marketing campaigns and seasonal fashion fads, instead relying on artisanship, scarcity, and heritage to attract customers.

This unwavering consistency has not gone unnoticed by investors.

Hermès now trades at nearly 45 times forward earnings—more than double the average for luxury peers—and recently surpassed a market capitalization of €220 billion, making it Europe’s second most valuable company after LVMH.

Though it may have missed the mark by a hair in Q1, Hermès remains the industry’s north star—luxury at its purest, and most enduring.

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