The Nvidia stock falls when Trump’s tariffs send shockwaves across the market

NVIDIA (NVDA) stock fell as much as 5% in early trade on Monday, which extended the previous week’s fall when investors responded to Trump’s new tariffs.

US President Donald Trump on Saturday announced an additional 10% duty on imports from China and 25% on them from Mexico and Canada to the apparent surprise of investors who were underpriced such a risk. The tech-heavy Nasdaq (^IXIC) was turned off more than 2% Monday morning.

Read more: The latest news and updates as Trump’s customs rates are set to take effect

Nvidia’s stock was already rolling off the news last week that the Trump administration was further considering tightening the rules for exporting Nvidia chips to China. Bloomberg, referring to named sources, said the administration’s officials were in the early stages of discussions to extend restrictions on the export of Nvidia’s H20 chips, a version of its jumps AI chips designed specifically to China to comply with us with export rules. About 17% of Nvidia’s sales of 2024 came from China.

The report came after a new AI model released by the Chinese company Deepseek questioned the mammoth that released Big Tech on artificial intelligence infrastructure, triggering a massive sale in the technology sector. Nvidia fell 17% on a single day on the news and shaved $ 589 billion from the AI ​​chipmaker’s market capital-the largest single-day loss in stock market history.

While semiconductors are not directly affected by the new tariffs, Bernstein Analyst Stacy Rasgon wrote in a Monday research note that the tasks would affect the import of data processing equipment such as servers using AI chips. Higher prices of these products could reduce demand and have an indirect effect on chip revenue. Rasgon pointed to the fact that the United States imported $ 39 billion worth of data processing equipment, such as PCs and servers from China in 2023 and $ 28 billion from Mexico. Contract manufacturer Foxconn builds The world’s largest factory to collect servers with Nvidias Blackwell AI chips in Mexico.

The tariffs this weekend also sent other chip stores down. Nvidia -Rival Advanced Micro Devices (AMD) and Qualcomm (QCOM) dropped approx. 2%, while Micron (MU) and Broadcom (AVGO) sank almost 3%.

Nvidia CEO Jensen Huang met with Trump In the White House last Friday. A source familiar with the case told Reuters that the two discussed Deepseek.

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. E -mail her at [email protected].

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