Shares of Nvidia (NASDAQ: NVDA) are plummeting on Thursday. The artificial intelligence (AI) chip giant's stock lost 7.8% as of 1:30 p.m. ET, and was down as much as 9.5% earlier in the day. The steep decline comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 4.

The semiconductor sector was supposed to be spared from the latest round of tariffs and the trade wars. That has happened to some extent, but semiconductor stocks have still declined significantly, especially after China retaliated with its own tariffs and export restrictions for rare earth elements.

While investors generally are worried about tariffs today, an HSBC analyst is more concerned about Nvidia’s pricing power and the sustainability of AI spending.