NVIDIA's market value tanks again, with $200 billion wiped amid tariff fears

NVIDIA's stock took another major hit this week, dropping nearly 9% in a single day, following President Donald Trump's confirmation that new tariffs on imports from Canada, Mexico, and China would go into effect. The sell-off wiped over $200 billion from NVIDIA's market cap, bringing it down to $2.73 trillion, its lowest point since September.

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Credit: NVIDIA

Prior to this, NVIDIA had almost fully recovered from the DeepSeek panic selloff, which saw the company lose $600 billion in market value in January after concerns over low-cost AI competition. However, as reported by Yahoo, this latest drop shows how fragile market sentiment remains.

The new 25% tariffs on Canadian and Mexican imports, alongside a 10% tariff on Chinese goods, have reignited fears of rising manufacturing costs. While NVIDIA's AI chips are produced in Taiwan, which is currently exempt from tariffs, many of its products are assembled in Mexico, meaning these new trade restrictions could impact pricing and supply chains.

Beyond NVIDIA's stock struggles, the broader GPU market is already under strain, with both gaming and AI sectors facing mounting supply issues. OpenAI recently delayed the rollout of GPT 4.5, citing an ongoing shortage of NVIDIA H100 GPUs, while manufacturing issues have also disrupted the supply of RTX 5000-series cards. On the gaming side, tariffs and potential export restrictions threaten to further increase costs, affecting everything from NVIDIA's RTX 50-series GPUs to AMD's Radeon RX 9000 lineup.

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Credit: AMD / TechPowerup

Adding to the uncertainty, Singaporean authorities recently arrested three people for allegedly smuggling NVIDIA-powered AI servers into China, highlighting the ongoing risks of U.S. export controls. With the Trump administration reportedly considering even tighter restrictions on AI chip exports, analysts warn NVIDIA could face up to $5 billion in lost revenue if a full ban is enacted.

Despite reporting $39.3 billion in revenue last quarter, NVIDIA's stock has now dropped more than 13% since its latest earnings report, as investor concerns mount over trade policy and global supply chain pressures. The company had just regained momentum after DeepSeek's shockwaves, but this latest crash shows that market volatility for NVIDIA is far from over.

• Read more: OpenAI says it's out of GPUs as supply struggles continue across AI and gaming