Why Nvidia Stock Is Tumbling Today

Source The Motley Fool

Nvidia (NASDAQ: NVDA) shares are plunging today as investors worry that a major market for the artificial intelligence (AI) leader may be getting choked off. Nvidia has been caught in the trade battle between the U.S. and China before. But a move by the Chinese government today more directly targets Nvidia's AI chips than it had in the past.

That news drove Nvidia shares more than 5% lower this morning. As of 11:37 a.m. ET, Nvidia stock was still down by 4.7%. Global trade pressure is part of the reason shares have dropped about 8% year to date.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Nvidia walks a tightrope

Concerns about Nvidia's business came from both sides today. The U.S. has announced a new trade blacklist of Chinese companies citing national security concerns. The list of more than a dozen Chinese tech companies includes major Nvidia customers. The U.S. government will now need to approve sales to companies on the list.

At the same time, Chinese regulators have reportedly been pressuring its largest technology companies from purchasing Nvidia's H20 semiconductor chips citing the need for energy efficiency improvements. The H20 was specifically designed to qualify for sale in China after the U.S. imposed sanctions that disqualified its most powerful chips.

The situation adds uncertainty for investors in a meaningful market. China was Nvidia's fourth-largest market, contributing $17.1 billion in revenue in fiscal 2025. That was 13% of its total sales.

Trust experienced leadership

Nvidia CEO Jensen Huang has proven his leadership abilities in navigating trade issues before. As far back as 2022, Nvidia transitioned some operations out of China due to export controls. While data center revenue in China grew last year, the company says as a percentage of its total, it remains well below levels achieved prior to the onset of export controls in late 2023.

Yet the company has thrived. Investors should feel confident it can navigate the current environment as well. Today's drop looks to be another opportunity to buy shares of the AI leader.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $312,980!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,421!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $537,825!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of March 24, 2025

Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonightThe dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
Author  Suzie
Sep 22, Tue
The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anywayMicron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.
Author  Irene Q.
Sep 23, Wed
Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.
placeholder
Gold Price Forecast: XAU/USD drifts toward $4.300 with bears gaining tractionGold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.
Author  FXStreet
Sep 23, Wed
Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.
placeholder
US input costs rose at the fastest pace in four years — the September flash PMI beat is an inflation story, not a growth storyUS September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.
Author  Suzie
23 hours ago
US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.
goTop
quote