Nvidia Stock Plummets Amid AI Chip Export Concerns and Trump's Tariff Policies
12 Sources
[1]
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)
[2]
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
[3]
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
[4]
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
[5]
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
[6]
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,
[7]
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
[8]
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
[9]
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
[10]
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
[11]
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
[12]
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
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Nvidia's stock experiences a significant drop due to concerns over AI chip exports to China, potential new export restrictions, and the impact of Trump's tariff policies on the tech sector.
Nvidia Stock Tumbles Amidst AI Export Concerns and Economic Uncertainty
Nvidia Corporation (NVDA), the leading AI chip manufacturer, has seen its stock price plummet by approximately 27% from its peak, marking its lowest point since September 2024
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. As of March 7, 2025, Nvidia was trading at $111.44, down nearly 5% in recent trading5
. This significant decline has erased over $800 billion in market value, with the company's market capitalization hovering around $3 trillion4
.Factors Contributing to the Selloff
Several factors have contributed to Nvidia's stock decline:
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AI Chip Export Concerns: Reports suggest that Chinese buyers are bypassing U.S. export regulations to acquire Nvidia's AI chips through neighboring countries
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. This has raised concerns about potential revenue inflation and the possibility of more stringent export controls2
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Trump's Tariff Policies: President Donald Trump's confirmation of tariffs on Canada, Mexico, and China, set to take effect imminently, has shaken Wall Street
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. These tariffs are expected to impact the tech sector significantly5
. -
Economic Indicators: The ISM Manufacturing Survey for February indicated potential stagflation, with falling employment and orders but higher prices
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. This has affected economically sensitive stocks, including semiconductors. -
Potential New Restrictions: Mizuho analysts have warned of "significant new China AI and export license restrictions," which could result in a revenue hit of $4 billion to $6 billion for Nvidia in the second half of the year
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Broader Impact on AI and Tech Stocks
The selloff has extended beyond Nvidia, affecting other AI-related stocks:
- Broadcom (AVGO), set to report earnings soon, has followed Nvidia's downward trend
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. - AI server maker Super Micro Computer (SMCI) fell 13%
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. - Nuclear power providers Constellation Energy (CEG) and Vistra (VST) both lost more than 7%
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Industry Outlook and Analyst Perspectives
Despite the current downturn, many analysts remain bullish on Nvidia's long-term prospects:
- The average price target of 19 analysts covering the stock is about $177, suggesting nearly 50% upside from current levels
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. - Mizuho analysts expect the impacts of headwinds from China and AI chip restrictions to "remain muted"
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. - The demand for Nvidia's new Blackwell chips continues to outpace supply, indicating strong market interest
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Historical Context and Future Expectations
Nvidia has experienced similar selloffs in the past, notably in July 2024 due to fears of slowing AI infrastructure investment
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. However, the stock has historically rebounded from such drawdowns:- After the July 2024 dip, Nvidia reached all-time highs in October of that year
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. - The company has seen drawdowns of 50% or more twice in the last decade, in 2018 and 2022, due to various economic and sector-specific factors
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While it's challenging to predict the duration or extent of Nvidia's current downtrend, historical patterns suggest that such selloffs have often presented buying opportunities for investors
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.References
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