Nvidia Stock Plummets Amid AI Chip Export Concerns and Trump's Tariff Policies

What's Going On With NVIDIA Shares Monday? - NVIDIA (NASDAQ:NVDA)

Get 5 stock picks identified before their biggest breakouts, identified by the same system that spotted Insmed, Sprouts, and Uber before their 20%+ gains. NVIDIA Corporation NVDA stock is trading lower on Monday. Reportedly, Chinese buyers are acquiring the company's artificial intelligence (AI) chips despite U.S. export regulations. What To Know: According to The Wall Street Journal, buyers are bypassing restrictions by routing orders for computing systems with restricted technology through companies registered in neighboring countries such as Malaysia, Vietnam and Taiwan. These entities then resell the technology to buyers in China. Authorities in these nearby regions have started implementing measures to make such attempts more difficult to carry out. The U.S. government began implementing controls on chip sales to China in 2022 under now former President Joe Biden. Biden signed multiple orders aiming to prevent China from acquiring certain chips. How President Donald Trump and his administration will respond remains unknown. Two Chinese universities have reportedly obtained AI servers containing restricted technology, while a separate merchant is suspected of possessing servers with controlled components. In response, Nvidia has tightened its "know-your-customer" policies and increased site inspections to ensure compliance with export rules. The company also claims that anonymous traders cannot provide the services and support that customers seeking advanced AI technology want. See Also: Philip Morris Considers Selling US Cigar Business As It Pushes Towards Smoke-Free Products: Bloomberg NVDA Price Action: At the time of writing, Nvidia shares are trading 6.3% lower at $116.99, according to data from Benzinga Pro. Image: via Shutterstock NVDANVIDIA Corp $116.31-6.90% Overview Market News and Data brought to you by Benzinga APIs

Why Artificial Intelligence Stocks Taiwan Semiconductor, Arista Networks, and Vertiv Holdings All Plunged Today

All of these stocks are tied to the artificial intelligence trade, and their moves are likely related to Nvidia, which was down around 9.8% at the same time. The large decline is likely due to a mix of broader economic factors around tomorrow's tariffs and their effects, industry-specific news items, and perhaps some company-specific news in the case of TSMC. Tariffs, China shipments, and $100 billion in TSMC investments Front and center in today's sell-off was the tariff threat, specifically on Canada, Mexico, and China. While these tariffs had previously been announced, some investors may have hoped for delays or cancellations. However, President Donald Trump confirmed the tariffs were set to go into effect tomorrow. The biggest fears over tariffs is that they will cause stagflation, which is a bad combination of slowing economic growth along with higher prices. The fears were augmented today by the ISM Manufacturing Survey from February, which was also released earlier today. In that survey, the index came in at 50.3, which was lower than the 50.9 reading in January and lower than the 50.8 that economists expected. While the miss on the overall index was a bit worrisome, some of the numbers underneath were even more so. The prices paid index jumped to 62.4 from 55.8 and was much higher than the expected 54.9, indicating inflationary pressures. Meanwhile, the manufacturing employment index fell to 47.6, from 50.3. The readings basically point to a stagflationary scenario, with falling employment and orders, but also higher prices. Needless to say, this report affected all economically sensitive stocks, which includes semiconductors and infrastructure stocks. In addition, there have been some renewed fears over the AI trade over the past few weeks. While Nvidia still reported strong numbers and guidance last week, the market was perhaps hoping for more reassurance. TSMC makes Nvidia's chips, Vertiv builds a lot of AI data centers around the world, and Arista makes the networking gear that many AI data centers use. So, these three stocks are all tied to Nvidia, in some way. Already present nerves over the sustainability of Nvidia's growth and the return on AI spend saw another headwind on Sunday. Yesterday, The Wall Street Journal ran a story on how China has apparently been able to procure Nvidia chips by getting around recent U.S. export controls. The story details how a sophisticated network of underground brokers reroutes shipments of the chips from Singapore to China through other shell companies in Malaysia, Vietnam, and Taiwan. That could also be a negative, as it may indicate Nvidia's sales have been inflated to some degree by these rerouted sales to China, and that if that trade is clamped down, Nvidia may lose that incremental revenue. Furthermore, it may set the stage for more stringent export controls broadly on semiconductors. Finally, Taiwan Semiconductor Manufacturing CEO C.C. Wei appeared with Trump at the White House today, announcing a $100 billion investment in the U.S. While that may seem like a positive, the announcement is a massive number that doesn't appear to include subsidies. Rather, the announcement was made to head off the threat of tariffs on Taiwan, where basically all production of today's leading-edge chips originate. The $100 billion figure is absolutely massive and would very expensive to TSMC, and it's unclear if the industry would even need that much capacity in the U.S. anytime soon, when factoring in TSMC's existing footprint in Taiwan. Details were somewhat scarce about the time frame of the investment, but it's possible that large number may also be making TSMC investors nervous. AI, tariffs, and geopolitics make a volatile brew Artificial intelligence could be the most disruptive technology to come about in a long time. That's exciting, but the semiconductor trade is also very much tied up right now in geopolitics. Investors should generally try to keep a cool head on days like today. However, the prospect of an economic downturn and geopolitical instability are certainly things to watch out for. If it's any consolation, it appears that securing AI supremacy going forward is now more critical than ever. The companies that deliver that value should see growth in their value over the medium term, but today's price action was certainly not fun.

Nvidia Stock Leads AI Selloff as Trump Tariffs Shake Wall Street

Shares of Nvidia were down about 10% in late afternoon trading, extending a volatile stretch that followed last Wednesday's earnings report. With Monday's losses, Nvidia is trading more than 20% below its January all-time high. Nvidia topped earnings estimates last week, but its meteoric rise and $3 trillion valuation left the chipmaker little room to disappoint. Narrowing profit margins spooked investors, prompting semiconductor and AI stocks to sell off last week. The contagion continued on Monday, with fellow chipmaker Broadcom (AVGO), slated to report earnings on Thursday, following Nvidia stock lower. Shares of AI server maker Super Micro Computer (SMCI) fell 13%, and nuclear power providers Constellation Energy (CEG) and Vistra (VST), both lost more than 7%. Very few AI stocks were spared. AppLovin (APP), which soared more than 700% last year on AI-fueled revenue growth, was up about 3%, bouncing back a bit from short-seller reports that tanked the stock last week. Wall Street's bullishness has been tempered lately by uncertainty about the outlook for the U.S. economy and the business of AI. Inflation has appeared stickier than expected, and consumer confidence has declined amid concerns about the consequences of Trump's tariff policies. The January release of Chinese start-up DeepSeek's R1 reasoning model, which its developers said could compete with the most advanced U.S. models at a fraction of the cost, injected fresh uncertainty into the AI trade. AI infrastructure stocks -- the chipmakers, server makers, and energy providers who have benefited from the build-out of AI data center capacity -- plummeted on concerns that DeepSeek's efficiency would undercut spending. Since then, cloud providers have stood by their plans to aggressively invest in AI. Those commitments, however, have failed to reignite an AI rally.

Nvidia stock down by 27% from its peak, here's what to expect next

Nvidia stock has come down by 27 percent from its peak a few months ago. This is said to be the lowest the AI chip maker has gone since September last year. In July 2024, a sell-off was seen over fears about slowing down of investment in AI infrastructure, which was due to big companies overspending on data centres as well as Nvidia chips, despite no meaningful returns.Nvidia stock did not perform well in recent weeks, with its share prices trading down nearly 16 percent year to date. Last week, the stock witnessed a 8 percent decline in a single day (Thursday), despite its earnings report beating the estimates. During the fourth quarter, Nvidia registered 78 percent revenue growth to $39.3 billion, going beyond the predictions of $38.2 billion. The AI chip leader's adjusted earnings per share (EPS) went up from $0.49 to $0.89, while the estimates were at $0.85. Since the beginning of 2023, Nvidia's stock has seen 600 percent jump in the market, while its market currently hovers around $3 trillion. According to financial services company The Motley Fool, the stock price has been witnessing a downtrend as it gets caught up amid growing concerns over US President Donald Trump's latest tariffs, accompanied by concerns that its chips might have been illegally exported to China. Currently, the Nvidia stock is down by 27 percent from its peak months ago. This is the lowest it has been since September last year. In the semiconductor sector, Nvidia has seen only one other occasion during the past two years when it came down as it has now. The last time it was pulled back so far was in July 2024. The sell-off was due to fears over slowing down of investment in AI infrastructure with concerns mounting about big companies overspending on data centres as well as Nvidia chips, despite no meaningful returns. Also Read : Jennifer Lopez upset over Ben Affleck's growing closeness with Jennifer Garner? Here's the truth After experiencing a double dip, Nvidia was back on track and reached its all -time highs in October last year. The Motley Fool states Nvidia's share saw drawdowns of 50 percent and above twice during the last 10 years. In 2018, the stock came down after going up for about a year over concerns about rising interest rates and tensions with China. Also, at that time there was a downtrend in the global economy, which includes less demand for semiconductors as well. In a similar fashion, the Nvidia stock witnessed another decline in 2022 as there was a major crash in tech sector stocks after the revenue from crypto-related demand came down. As of now, it is impossible to predict how long Nvidia stock will see a downtrend or how far it will fall. However, the financial services firm highlighted that the demand for the company's all-new Blackwell chips is continuing to outrun supply. At the same time, its "competitive advantage in the data center graphics processing units (GPUs) that make up the backbone of AI applications only seems to be getting stronger," the report added. Nvidia is next expected to recoup its recent losses in the market at some point of time in future. Also Read : Mindy Kaling has this to say over Meghan Markle correcting her in Netflix show 1. What's the current price of Nvidia stock? According to the NASDAQ website, Nvidia was trading at $111.44 at 7:59 AM ET on March 7. 2. What past shows about Nvidia's downtrend in stock market? History of the company's share shows that sell-offs have been good buying opportunities for the investors.

Nvidia Stock Slides Monday, Extending Post-Earnings Selloff

Shares of Nvidia were down nearly 5% in recent trading to $118.92, after falling about 7% last week, leaving them more than 20% below their all-time high in early January. Mizuho analysts warned clients Friday that Nvidia could potentially face "significant new China AI and export license restrictions," based on industry checks. Mizuho estimated that could mean a revenue hit to the tune of $4 billion to $6 billion for the AI chipmaker in the second half of the year. The comments come days after reports the Trump administration is seeking to tighten chip export curbs. Last week, President Trump also announced tariffs against products from Canada and Mexico would go into effect Tuesday, along with the doubling of the existing tariff on goods from China. Still, analysts have so far largely remained bullish on Nvidia's stock, pointing to the chipmaker's strong outlook on the back of growing AI demand. Mizuho analysts said they expect the impacts of headwinds from China and AI chip restrictions to "remain muted." The average price target of the 19 analysts covering the stock polled by Visible Alpha is about $177, suggesting nearly 50% upside from Monday's intraday level.

Why Nvidia Stock Is Plummeting Today | The Motley Fool

A report released Sunday by The Wall Street Journal revealed that despite strict U.S. export restrictions, Nvidia's latest chips are finding their way into China. Since 2022, the U.S. has sought to keep the best artificial intelligence (AI)-powering chips from entering the Chinese market. Nvidia, the undisputed market leader, is barred from selling the latest versions of its chips to Chinese companies. However, a gray market has emerged, allowing Chinese firms to purchase servers filled with Nvidia's latest Blackwell chips. The chips are sold to legitimate partners in the region and are then being routed into the Chinese companies, unbeknownst to Nvidia. The company said it would "investigate every report of possible diversion and take appropriate action." The Trump administration is currently weighing its options in escalating trade tensions with China. In contrast to Canada and Mexico, China did not make overt concessions after the initial round of tariffs were imposed earlier this year. It's entirely possible that the administration intends to raise tariffs already, but news that export controls on critical AI-enabling Nvidia chips are being circumvented could lead the administration to up the ante. Additional controls or tariffs could have a direct effect on Nvidia's bottom line.

Again, Nvidia stock drops 9%: How bad could it get?

Nvidia shares fell nearly 9% on Monday as President Donald Trump confirmed that tariffs from Canada and Mexico will take effect on Tuesday. The company's decline contributed to a broader market downturn, with the Dow dropping 800 points (1.8%) and the Nasdaq Composite sliding more than 3%. Nvidia's stock price fell 8.7%, erasing nearly six months of gains since it closed at $108.10 on September 10, 2024, according to Dow Jones Market Data. Other AI-themed stocks also experienced steep declines. Super Micro Computer Inc. shares dropped 13%, while Astera Labs Inc. shares fell 9%. Arm Holdings PLC, Broadcom Inc., and Marvell Technology Inc. shares decreased by 8%, 6%, and 6.5%, respectively. According to MarketWatch, Jordan Klein, a Mizuho desk-based analyst, observed that the unraveling of the AI trade is a continuation of trends seen in the previous week. Concerns specific to Nvidia include fears of new tariffs from China and stricter export restrictions that could inhibit sales in the country. We reported that Singapore officials are investigating whether servers shipped to Malaysia contained Nvidia products banned from sale in China, which may have ended up in other destinations. Klein noted that a significant risk is that the U.S. government may act to ban all Nvidia chips from being sold in China. A report from The Wall Street Journal highlighted that Nvidia's latest Blackwell chips are reaching China through third-party resellers, violating export controls. Singapore's investigation also involves customers of Nvidia, Dell, and Super Micro, examining potential violations concerning the shipment of servers that may contain Nvidia chips from Singapore to Malaysia, suspected as a route for chip smuggling to China. Nvidia's stock has seen a sharp decline of more than 12% over the past five days, trading just above its 2025 low of approximately $117, following a downturn fueled by a cheap Chinese AI model from DeepSeek that impacted U.S. Big Tech stocks. An Nvidia spokesperson stated, "Anonymous traders cannot acquire, deliver, install, use, and maintain Blackwell products in unauthorized countries," affirming the company's commitment to investigating reports of possible diversion. Nvidia utilizes Arm's architecture for its Grace CPUs, employed alongside its Blackwell GPUs in its AI server systems produced by Dell and Super Micro. Concerns regarding further restrictions on sales to China are also prominent among investors. Gil Luria, an analyst at DA Davidson, indicated the company's current stance is that it isn't accountable for its resellers' actions but questioned whether this would stand as restrictions evolve. Nvidia's recent earnings report revealed that its Blackwell AI server designs contributed $11 billion to fourth quarter revenue, reaching full-scale production despite previous reports of glitches and overheating issues. CFO Colette Kress reported that data center sales in China remain considerably below levels seen before export controls were enacted by the Biden administration in 2022, stating, "Absent any change in regulations, we believe that China shipments will remain roughly at the current percentage." Trump is reportedly examining further restrictions on Nvidia exports to China, potentially including the expanded regulation of Nvidia's H20 chips, a version of its Hopper GPUs made for compliance with U.S. trade rules. Nvidia began creating specialized versions of its GPUs for China in 2022 as part of efforts to align with U.S. trade regulations. On the same day, a report indicated that Nvidia and Broadcom are testing Intel's latest chip manufacturing process, which has faced numerous setbacks. Nvidia's stock is currently valued at approximately $2.79 trillion, having lost $265 billion in market capitalization post-decline, and is trading at levels similar to those prior to the U.S. presidential election. Nvidia has experienced a 13% drop since its earnings report that exceeded analysts' expectations, with a 78% revenue increase year-over-year to $39.33 billion. Kress stated regarding the tariffs, "Tariffs at this point, it's an unknown until we understand further what the U.S. government's plan is." Although Nvidia's chips are primarily manufactured in Taiwan, systems and computers that include these chips are produced in Mexico and the U.S., which could be subject to Trump's 25% tariffs that take effect on Tuesday. Nvidia is also facing scrutiny regarding its exports to Singapore, perceived as a transit point for shipping chips to China in violation of export controls, highlighted by recent detentions in Singapore of individuals misrepresenting server destinations. Despite these challenges, Nvidia aims to proceed with a $100 billion expansion of its manufacturing facilities in the U.S., as announced by Trump. During discussions last week regarding Nvidia's potential for continued AI growth among major cloud companies, which constitute about half of its data center revenue, CEO Jensen Huang expressed optimism, saying, "We're going to have a good quarter next quarter." Furthermore, Huang noted a solid pipeline of demand for Blackwell products. Following these developments, Broadcom shares fell approximately 6%, while Dell stock dropped nearly 7%. Super Micro's shares experienced a 13% decrease for the day, compounding its nearly 30% loss from the previous week. Shares of Arm also declined by around 8%. Nvidia has lost approximately $708 billion in market capitalization due to instability within the chip sector, but company executives assert they stand to gain from increasing inferencing demand fueled by "reasoning AI." In total, Nvidia is down about $900 billion from its peak market cap of $3.66 trillion, reached on January 6, 2024. Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Please consult with a qualified financial advisor before making any investment decisions.

Nvidia stock has plunged 18% in just 7 days, what could be the reason? Here's what reports are saying

Nvidia's stock plummeted by 18% in a week, entering a bear market. Despite strong earnings, concerns over profit margins and leaked AI chip sales to China have exacerbated the situation. Regulatory issues loom as Nvidia's GPUs are reportedly entering China through black market routes, prompting investigations. Investors are wary as shares dip below critical resistance levels. Nvidia's stock has taken a significant hit this past week, dropping 18% in just seven days, and investors are left wondering what's behind the steep decline. Business Insider reported that on Monday the stock dropped by as much as 8%, trading at $114.51, marking a troubling new low. Nvidia, known for its high-performance AI graphics processing units (GPUs), technically entered a bear market last week after the stock dropped over 20% from its high in early January, reported Business insider. Following a robust earnings report last week that exceeded analysts' expectations, Nvidia's stock continued to drop, sending investors into a worry mode. Even with strong forward-looking guidance, the earnings report fell short of Wall Street's expectations and raised concerns about profit margins, as per Business Insider. But the investor concerns didn't just end here. News regarding Nvidia's leaking artificial intelligence chip sales to China have further increased apprehensions. According to the Wall Street Journal, Chinese technology firms are finding ways to acquire Nvidia's Blackwell GPUs, even under US export controls intended to stop this tech from flowing into China. These high-performance chips, which include Blackwell server containing eight AI GPUs, can fetch more than $600,000 each in China, as per the report. While Nvidia's previous-generation Hopper server could sell for about $250,000 in the country, the report added. The chips are entering China through black market traders via nations such as Malaysia, Vietnam, and Singapore, spurring concern about potential legal and regulatory repercussions for Nvidia, reported Wall Street Journal. Singapore has launched a fraud investigation of Nvidia's overseas chip sales, according to a Bloomberg report. The probe is to find out whether servers shipped from Dell Technologies and Super Micro Computer to Malaysia contain Nvidia chips that are restricted from entering China, reported Bloomberg. Nvidia's shares declined below critical levels of resistance near $130 and is now below both its 50-day and 200-day moving averages, reported Business Insider. This indicates as a warning signal to traders, as per the report. What happened to Nvidia's stock this week? Nvidia's stock dropped by 18% in just seven days, with an 8% drop on Monday alone, hitting a new low of $114.51. Why did Nvidia's stock drop so much? The stock entered a bear market after falling more than 20% from its January highs, and concerns over leaked chip sales to China, along with a disappointing earnings report, according to Business Insider.

Nvidia Leads AI Stock Rebound After Shaking Off Trump Tariff Fears

Nvidia (NVDA) stock rebounded from an early-morning slump on Tuesday as AI stocks shook off the tariff shock that sent the broader market reeling. Nvidia shares rose 1.7% Tuesday after tumbling more than 8% yesterday and trading as much as 4% lower in premarket trading today. AI server maker Super Micro Computer (SMCI), which tumbled 13% yesterday, also rebounded, climbing 8.5%. The two led a broad AI rally, with Wall Street darling Palantir (PLTR) and Vistra (VST) also advancing. AI stocks have been on a wild ride for the past month. Concerns about stubborn inflation and the consequences of President Donald Trump's tariffs have cast a fog over the market's outlook for both the U.S. economy and interest rates. Headlines out of Washington have tempered the risk appetite that last year powered triple-digit gains for AI beneficiaries like Palantir, Vistra, and Applovin (APP). Nvidia's stock has also been pressured over the last month by Chinese start-up DeepSeek's claim it developed a top-tier reasoning model without Nvidia's most powerful chips. That revelation initially sparked concern that U.S. cloud providers could rein in their spending on chips and servers to focus on creating more efficient AI, but big tech companies have since stood by their plans to invest hundreds of billions in AI infrastructure. DeepSeek has led the U.S. and other countries to investigate whether Chinese developers are acquiring Nvidia's chips illegally. Singapore is reportedly investigating whether servers containing advanced Nvidia chips were illegally routed to DeepSeek after being sold to local firms. The investigations could compel the Trump Administration to tighten export restrictions even further, weighing on Nvidia's international sales. Despite all the concerns, analysts are still mostly bullish on Nvidia's stock. Wedbush analysts have even argued that Nvidia will benefit from DeepSeek; they argue that demand for AI and Nvidia's chips will increase as models become more efficient and less expensive.

Trump's Tech War Could Cost Nvidia Billions -- Here's Why - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA)

Nvidia Corp NVDA could be facing mounting pressure as President Donald Trump's administration is considering tightening technology export controls to China, threatening a revenue stream that accounts for roughly 15% of the chipmaker's business. The potential restrictions respond to recent advances by Chinese AI firms, particularly DeepSeek, whose latest models briefly wiped $600 billion from Nvidia's market value earlier this year, the Economist reported last week. Commerce Secretary Howard Lutnick signaled a hard-line stance on technology sales to China. During his confirmation hearing, Lutnick pointed to Nvidia's chips being used by DeepSeek, saying "It's got to end," according to The Economist. Don't Miss: This 12,000 RPM Spinning Battery With Over $100 Million In LOIs Could Be The Missing Link For Green Energy -- Here's Why Early Investors Are Flocking To Invest Before Funding Closes The $1.3 Billion Startup Investment Boom: How This Company's Explosive Growth Is Opening Doors For Everyday Investors With A New $500 Minimum The administration is weighing two options that could impact Nvidia's business. Officials may further restrict sales of specialized AI chips to China, potentially including the H20, a scaled-down GPU Nvidia created for the Chinese market after previous export controls. Dylan Patel, an expert in AI and semiconductor research at SemiAnalysis believes Nvidia has suspended H20 production in anticipation of new restrictions, despite manufacturing over 1 million units in the nine months leading to January, The Economist said. The second approach involves enforcing the framework for AI Diffusion, a rule introduced in the final days of the Biden administration to prevent Chinese firms from accessing advanced GPUs through third countries. Trending: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target - Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share! Nvidia called the rule "misguided" when announced. The company argues that imposing restrictions on over 150 countries risks alienating allies and potentially driving them toward Chinese alternatives like Huawei's AI chips. Despite the challenges, Nvidia CEO Jensen Huang met with Trump at the White House at the end January. While Huang reportedly lacks the close relationship with Trump that some tech leaders enjoy, he has connections through Elon Musk, whom he praised for building a data center for his GPU-intensive startup xAI. Geopolitical tensions have already impacted Nvidia's Chinese business, with sales to the region dropping from over 20% of total revenue two years ago. The Chinese government has launched an antitrust investigation into Nvidia, widely viewed as retaliation for U.S. export controls. See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing -- you can become an investor for $0.80 per share today. Nvidia on Wednesday reported quarterly sales growing 78% year-over-year to $39 billion. The company's share price has largely recovered from its post-DeepSeek decline, suggesting investors believe the Chinese firm's breakthrough might increase GPU demand by making AI more accessible. In a note to clients earlier this week, analysts at TD Cowen highlighted that Microsoft MSFT canceled some data center leases in America, potentially signaling a slowdown in infrastructure spending, despite the tech giant's insistence it remains committed to investing $80 billion in infrastructure this year. Read Next: 'Scrolling To UBI' -- Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? MSFTMicrosoft Corp $384.80-0.95% Overview NVDANVIDIA Corp $110.65-2.99% Market News and Data brought to you by Benzinga APIs

Why Nvidia Stock Jumped Today

Despite initially opening the day's trading in the red, Nvidia (NVDA 1.69%) stock wound up posting gains in Tuesday's trading. The artificial intelligence (AI) hardware leader's share price ended the session up 1.7% and had been up as much as 4.6% earlier in the session. Nvidia stock saw a modest recovery today as investors digested the effects of tariffs and other macroeconomic pressures and geopolitical dynamics that involve the company's chips. The AI leader's share price also got a boost from Taiwan Semiconductor Manufacturing's recent announcement that it will invest $100 billion to expand its U.S. chip-fabrication operations. Investors bought back into Nvidia stock after yesterday's rout Nvidia stock fell 8.7% in yesterday's trading as investors reacted to the impending implementation of new tariffs on Canada and Mexico. Expectations that export restrictions and enforcement initiatives could intensify following new reports that China is gaining access to prohibited Nvidia chips through third-party sellers also added to sell-offs. While these risk factors remain, investors bought back into stocks as the day progressed and helped drive a moderate shift in bullish sentiment for the day. Despite today's gain, Nvidia stock is still down 13.8% across 2025's trading. TSMC's $100 billion U.S. investment could be good for Nvidia TSMC plans to spend $100 billion to build new chip foundries in Arizona. The Taiwan-based chip fabrication leader manufactures Nvidia's semiconductor designs and is the world's largest and best-performing contract foundry. Rising tensions between the U.S. and China and concerns that the latter country could move to invade or exert greater control over Taiwan have been a source of valuation volatility for the tech sector. TSMC has enormous importance in global supply chains and AI technologies in particular, and disruption of its operations would have huge adverse effects. With the fabrication giant expanding its operational footprint in the U.S., a major geopolitical risk factor could be mitigated -- but hitting its new expansion target in the country will take a long time.

NVIDIA's market value tanks again, with $200 billion wiped amid tariff fears

TL;DR: NVIDIA's stock fell nearly 9% due to new tariffs announced by President Trump, erasing over $200 billion from its market cap. Despite recovering from a previous selloff, NVIDIA faces challenges from trade restrictions and supply chain issues, impacting its AI and gaming sectors. NVIDIA's stock took another major hit this week, dropping nearly 9% in a single day, following President Donald Trump's confirmation that new tariffs on imports from Canada, Mexico, and China would go into effect. The sell-off wiped over $200 billion from NVIDIA's market cap, bringing it down to $2.73 trillion, its lowest point since September. Credit: NVIDIA Prior to this, NVIDIA had almost fully recovered from the DeepSeek panic selloff, which saw the company lose $600 billion in market value in January after concerns over low-cost AI competition. However, as reported by Yahoo, this latest drop shows how fragile market sentiment remains. The new 25% tariffs on Canadian and Mexican imports, alongside a 10% tariff on Chinese goods, have reignited fears of rising manufacturing costs. While NVIDIA's AI chips are produced in Taiwan, which is currently exempt from tariffs, many of its products are assembled in Mexico, meaning these new trade restrictions could impact pricing and supply chains. Beyond NVIDIA's stock struggles, the broader GPU market is already under strain, with both gaming and AI sectors facing mounting supply issues. OpenAI recently delayed the rollout of GPT 4.5, citing an ongoing shortage of NVIDIA H100 GPUs, while manufacturing issues have also disrupted the supply of RTX 5000-series cards. On the gaming side, tariffs and potential export restrictions threaten to further increase costs, affecting everything from NVIDIA's RTX 50-series GPUs to AMD's Radeon RX 9000 lineup. Credit: AMD / TechPowerup Adding to the uncertainty, Singaporean authorities recently arrested three people for allegedly smuggling NVIDIA-powered AI servers into China, highlighting the ongoing risks of U.S. export controls. With the Trump administration reportedly considering even tighter restrictions on AI chip exports, analysts warn NVIDIA could face up to $5 billion in lost revenue if a full ban is enacted. Despite reporting $39.3 billion in revenue last quarter, NVIDIA's stock has now dropped more than 13% since its latest earnings report, as investor concerns mount over trade policy and global supply chain pressures. The company had just regained momentum after DeepSeek's shockwaves, but this latest crash shows that market volatility for NVIDIA is far from over.