The actions of the main designer of graphics chips NVIDIA (NASDAQ: NVDA) fell 7.8% during the afternoon session after China imposed a rate of 34% on all American imports in the midst of commercial war tensions which increased tensions. This has been particularly difficult for manufacturers of American fleas because a large part of their business is looking at the request of China. New prices are not only threatening to erode beneficiary margins, but are also likely to reduce market share.
Adding to uncertainty, the Trump administration reported the possibility of a new regulatory action against the sector. Although semiconductor companies have notably been excluded from large prices unveiled on April 2, 2025, their exclusion raised concerns that targeted restrictions could still be to come.
The stock market reacts excessively to news, and large price reductions may have good opportunities to buy high quality shares. Is it time to buy NVIDIA? Access our full analysis report here, it’s free.
Nvidia’s shares are extremely volatile and have had 32 movements greater than 5% in the past year. In this context, today’s decision indicates that the market considers this significant news but not something that would fundamentally change its perception of the company.
The major previous decision we wrote was 9 days ago when the stock dropped by 6%on the news that shares withdrawn (NASDAQ -1.5%, S&P 500 to 1.2%) in new concerns about commercial prices. The decline followed the comments of President Trump clarifying the scope of the prices of 25% of his administration on Venezuela. He noted that this would apply to any country that does business with Venezuela. For example, 25% is at the top of the price already in place of 20% on China because China imports Venezuela oil, which could result in a price of 45% on certain Chinese products. This announcement could considerably increase the operating costs of the companies and the institutions concerned.
In addition, the Financial Times said that Chinese regulators have prevented the country’s technological companies from using the NVIDIA H20 chip. The chip was designed to comply with the American commercial ban rules, but it seemed that Chinese regulators feared being able to break the rules of energy efficiency.
Adding to concerns, it was also reported that the United States had added more Chinese companies to its commercial black list, citing national security problems. Consequently, these companies would now need government approval to buy American technology. Among the affected people were technological companies that depended heavily on the advanced chips made by American manufacturers, which raises concerns concerning the American capacity of flea manufacturers to maintain solid sales on the Chinese market.