NVIDIA (Nvda) Shares dropped up to 5% at the start of negotiation on Monday, extending the decline of the previous week as investors reacted to Trump’s new prices.
President Donald Trump announced on Saturday an additional 10% rate on imports from China and 25% on those in Mexico and Canada to the visible surprise of investorswho had such an underlined risk. Nasdaq heavy in technology (^ Ixic) was down more than 2% on Monday morning.
Find out more: The latest news and updates while Trump prices should take effect
Nvidia’s stock was already in shock of the news last week that the The Trump administration plans to further strengthen the rules on exports of NVIDIA fleas in China. Bloomberg, citing anonymous sources, said that administration officials were in the early stages of discussions to extend the export restrictions of NVIDIA H20 chips, a version of its HOPPER chips designed specifically for China to comply American export rules. Some 17% of NVIDIA sales in 2024 came from China.
The report intervened after a new AI model published by the Chinese company Deepseek questioned the gigantic expenses of Big Tech on artificial intelligence Infrastructure, triggering a massive sale in the technological sector. NVIDIA fell 17% in a single day to news, razing $ 589 billion on the market capitalization of the IA flea manufacturer – the biggest loss of a day in terms of stock market history.
Although semiconductors are not directly affected by new prices, Bernstein analyst Stacy Rasgon wrote in a Monday research note that rights would affect imports of data processing equipment, such as servers using AI fleas. Higher prices of these products could reduce demand and have an indirect effect on flea sales. Rasgon stressed that the United States had imported a value of $ 39 billion in data processing equipment, such as PCs and China servers in 2023 and $ 28 billion in Mexico. The manufacturer of Foxconn contracts built The largest factory in the world to assemble servers with the Blackwell AI chips in Nvidia in Mexico.
The new prices during the weekend also sent other stocks of fleas. NVIDIA Rival Advanced Micro Devices (Dmla) and Qualcomm (Qcom) fell by about 2%, while Micron (Mu) and Broadcom (Avo) sank almost 3%.
The CEO of Nvidia, Jensen Huang, Met Trump Last Friday at the White House. A familiar source with the case told Reuters that the two had discussed Deepseek.
Laura Bratton is Yahoo Finance journalist. Follow it on Bluesky @ laurabratton.bsky.social. Send him an email to laura.bratton@yahoinc.com.
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