On the eve of U.S. President Donald Trump's Liberation Day, when he announces a swath of tariffs, uncertainty swirls around the Magnificent Seven, where concerns loom over the near-term trajectory in artificial intelligence spending, according to Wedbush.

"The more worries and uncertainty created by tariffs across all industries clearly will slow economic demand and create higher prices...in turn C-level management then look to slow down spending which could include AI projects," said Wedbush analysts, led by Daniel Ives, in a Tuesday investor note. "The Trump tariffs, in theory, could change the growth trajectory of AI spending in the near-term (not the long-term) and stocks are reacting to those worries."

Trump is set to formally announce the "country-based" tariffs during an appearance in the Rose Garden on April 2, White House Press Secretary Karoline Leavitt said.

"In terms of the upcoming tariff announcement, we still don't know which countries they'll be imposed on and what rate," said Deutsche Bank's Jim Reid.   

"So far we have not seen any signs of spending deterioration in the field ... but this white-knuckle moment has created a global risk-off for US tech and overall markets with many waiting on the sidelines or instead investing in European and China stocks until the Street figures out the new rules of the game by Trump," Ives said. "We also add that anyone that has taken a basic economics class in high school/college knows that consumers pay for the tariffs ... This further puts pressure on consumer spending and confidence, which therefore could cause slower spending/digital ad dollars/ investing by enterprises on Cap-Ex as the ripple impact which ultimately is what the Street is fearing every morning."

China remains the most significant variable in this equation. Ives said Asia is the core of the semiconductor industry, with China comprising a major manufacturing footprint. It would require hundreds of billions of dollars and several years just to move 10% of the supply chain from Asia to the U.S. If China aggressively retaliates, it could constrict the supply chain for Nvidia (NASDAQ:NVDA) hardware. It could also push Chinese consumers to purchase more domestic products, affecting brands like Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA).   

Over the past two months, Apple, Nvidia and Tesla share values have continued to diverge further and further away from Wedbush price targets of $325, $175 and $550, respectively. 

The Roundhill Magnificent Seven ETF (BATS:MAGS) was up nearly 2% by noon trading on Tuesday, after falling 14% year to date.

Every stock in the Magnificent Seven edged higher during Tuesday trading. Tesla led the pack, climbing 6%; Google (NASDAQ:GOOG)(NASDAQ:GOOGL) was up 2%; while Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) all increased about 1.5%. Nvidia ticked up 1% while Apple inched 0.25% higher.