Nvidia’s stock plummeted by as much as 5% on Monday, extending a decline seen in the prior week. The move was sparked by US President Donald Trump announcing new tariffs of 10% on imports from China and 25% on those from Mexico and Canada.
The news sent shockwaves through the tech industry, with many investors underestimating the risk associated with such measures. The Nasdaq index fell more than 2% in early trading, while Nvidia’s stock ultimately ended the day down 2.8%.
Nvidia’s shares had already been reeling from reports that the Trump administration was considering tighter restrictions on exports of its chips to China. The news sent Nvidia’s stock into a tailspin last week, with the company losing 17% in a single day.
The new tariffs are expected to affect imports of data processing equipment, such as servers using AI chips. Bernstein analyst Stacy Rasgon warned that higher prices could reduce demand and have an indirect impact on chip sales.
Other chip stocks also took a hit, including Nvidia rival Advanced Micro Devices (AMD) and Qualcomm (QCOM), which dropped about 2%. Micron (MU) and Broadcom (AVGO) saw their shares sink nearly 3%.
Nvidia CEO Jensen Huang met with Trump at the White House last Friday, where they discussed DeepSeek, a Chinese firm that released an AI model that challenged Big Tech’s spending on artificial intelligence infrastructure.
Source: https://finance.yahoo.com/news/nvidia-stock-falls-as-trumps-tariffs-send-shockwaves-across-the-market-150548726.html