Nvidia Stock Slides on Tariffs, Exports, and AI Infrastructure Concerns
Nvidia (NVDA) shares plummeted 5% in early Monday trading, continuing a decline sparked by President Trump's new tariffs and export rule considerations.
Trump's Tariffs and Data Processing Equipment
Trump's announcement of 10% tariffs on Chinese imports and 25% on Mexican and Canadian imports caught investors off guard, causing a broader tech selloff. Bernstein analyst Stacy Rasgon notes that while semiconductors are not directly affected, increased tariffs on data processing equipment could indirectly impact chip demand.
Export Rule Tightening
Bloomberg reported that the Trump administration is considering expanding restrictions on exports of Nvidia's H20 chips to China. This follows concerns about potential misuse of the chips, accounting for 17% of Nvidia's 2024 sales.
AI Infrastructure Spending Concerns
Last week's release of DeepSeek's AI model raised questions about Big Tech's massive spending on AI infrastructure. This triggered a sell-off in the tech sector, with Nvidia losing 17% in one day.
Impact on Chip Stocks
Nvidia's decline was accompanied by losses in other chip stocks:
* Advanced Micro Devices (AMD): -2%
* Qualcomm (QCOM): -2%
* Micron (MU): -3%
* Broadcom (AVGO): -3%
Nvidia CEO Meets with Trump
Nvidia CEO Jensen Huang met with Trump at the White House on Friday to discuss DeepSeek and other concerns.