Nvidia shares fell nearly 9% on Monday after President Donald Trump confirmed that tariffs from Canada and Mexico will go into effect on Tuesday. The company’s valuation dropped by $265 billion, bringing its market cap to $2.79 trillion.
The downturn is part of a broader market slump, with the Dow falling 800 points and the Nasdaq Composite sliding over 3%. Nvidia shares are now trading at the same price they were in September before the US presidential election.
Since Wednesday’s earnings report, which showed strong revenue growth, Nvidia’s shares have fallen by 13%. Analysts had asked about the company’s response to US tariffs during the earnings call. However, Nvidia Chief Financial Officer Colette Kress expressed uncertainty, saying “Tariffs at this point, it’s an unknown until we understand further what the US government’s plan is.”
Nvidia’s chips are mostly made in Taiwan, but some components may be affected by Trump’s 25% duties on imports from Mexico and Canada. The company also faces scrutiny over its exports to Singapore, which could potentially bypass US export controls.
Despite this, Nvidia officials announced plans to manufacture chips at a new $100 billion expansion of Taiwan Semiconductor Manufacturing facilities in the US. CEO Jensen Huang expressed confidence in the company’s outlook for continued AI growth from cloud companies, stating that they will have a “good quarter next quarter” and a strong pipeline of demand for their latest chip, Blackwell.
Source: https://www.cnbc.com/2025/03/03/nvidia-shares-fall-9percent-on-tariff-fears.html