Once boasting of a market capitalisation in excess of $3 trillion, Monday’s slide wiped out another $265 billion from the company’s overall value, taking it down to $2.79 trillion. Nvidia shares have slumped 13% since the chipmaker reported earnings last week.
During the company’s earnings call, the management had mentioned that tariffs are an unknown at this point until they further understand what the government’s plan is.
Most of Nvidia’s chips are made in Taiwan but the more sophisticated systems and full computers surrounding the chips are made in regions including Mexico, where the 25% tariff levy will take effect.
Nvidia is also under scrutiny on Monday for its exports to Singapore as some analysts believe that it is the company’s way to ship the components to China by bypassing the US export controls. Singapore officials had detained three people last week for lying about where these servers were bound for.
Officials of the company also mentioned that they would be manufacturing chips at the new $100 billion expansion plan of Taiwan Semiconductor Manufacturing Company (TSMC), which was announced by President Trump on Monday.
Nvidia’s revenue grew by 78% during the fourth quarter, which did not impress the street as growth during the same quarter last year stood at 262%. The management has assured of a “good first quarter” during its earnings call.
“We’re going to have a good quarter next quarter,” Nvidia CEO Jensen Huang told CNBC last week. “And we’ve got a fairly good pipeline of demand for Blackwell.”
Shares of Nvidia ended 8.7% lower on Monday at $114.05. The stock is down 25% from its peak of $153.
(With Inputs From Agencies.)
