The NVIDIA (NVDA) shares decreased by 5 % in early Monday trading, extending the decline in the previous week due to investors’ reactions to Trump’s new tariffs.
U.S. President Donald Trump announced on Saturday a 10 % additional charge for imports from China and 25 % of Mexico and Canada. NASDAQ (^IXIC), which has a lot of high -tech, was more than 2 % in the morning on Monday.
Read more: The latest news and updates set to enable Trump tariffs
NVIDIA’s shares had already fluctuated last week from the news that the Trump administration was considering further tightening the rules for exporting NVIDIA chips to China. Bloomberg quotes anonymous information sources, expanding the export of H20 chip of NVIDIA, a specially designed hopper AI chip, which was specially designed by China to comply with US export rules. He said that he was in the early stage of the discussion. About 17 % of NVIDIA’s sales in 2024 were from China.
The report was brought after a new AI model released by a Chinese company Deepseek questioned the mammoth expenditure from the big technology of artificial intelligence infrastructure and caused a large -scale sale in high -tex cector. NVIDIA decreased by 17 % a day in the news, reducing $ 589 billion from AI CHIPMAKER’s market capitalization. This is the largest day in stock market history.
Although the semiconductor is not affected by new tariffs, Bernstein’s analyst Stacy Rasgon states in a Monday survey note that it affects the import of data processing devices such as servers using AI chips. A higher price of these products can reduce demand and have an indirect impact on chip sales. RASGON pointed out that the United States imported $ 28 billion from Mexico, a $ 39 billion of $ 39 billion, including PCs and servers from China in 2023. Contract manufacturer FoxConn has built the world’s largest factory to assemble a server with Mexico’s NVIDIA BLACKWELL AI chips.
The weekend tariff news has also dropped other chip stock. NVIDIA’s rival ADVANCED MICRO DEVICES (AMD) and Qualcomm (QCOM) decreased by about 2 %, and Micron (Mu) and Broadcom (AVGO) have set almost 3 %.
NVIDIA CEO Jensen Huang met Trump at the White House last Friday. The source of the problem said to Reuters that they had discussed deep shake.
Laura Bratton is a reporter of Yahoo Finance. Follow her with bluesky @laurabratton.bsky.social. Please email her to laura.bratton@yahooinc.com.
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