Nvidia’s stock tumbled 9% on Monday, falling deeper into correction territory, despite posting stronger-than-expected earnings last Wednesday. The artificial intelligence leader’s sharp decline is part of a broader selloff in the stock market, as investors recalibrate risks tied to President Donald Trump’s newly announced tariffs.
Key Details Nvidia’s stock dropped 8.7%, closing at around $114 per share, marking its lowest point since mid-September. The decline was spurred by a report from The Wall Street Journal suggesting that Chinese buyers were bypassing U.S. export controls to obtain Nvidia’s coveted AI chips. This news, combined with Trump’s announcement of 25% tariffs on Canadian and Mexican imports, accelerated a broader market retreat on Monday.
Nvidia led the charge in Monday’s losses, with the S&P 500 falling 1.8% and the tech-heavy Nasdaq dropping 2.6%. These losses intensified after Trump’s afternoon tariff announcement, set to take effect on Tuesday. The S&P closed at its lowest level since January 14, while the Nasdaq reached its lowest point since November 4. The Dow Jones Industrial Average, down 1.5% (or 640 points), also hit its lowest level since January 16.
The S&P and Nasdaq are now down 4.8% and 8.5%, respectively, from their all-time closing highs on February 19. Monday marked the S&P’s largest percentage loss of 2025.
Surprising Fact The S&P has nearly erased all of its post-2020 election gains, now standing just 1.2% above its Election Day closing, excluding dividends. The index has dropped 2.5% since Trump’s second inauguration.
Market Impact Nvidia has lost over $600 billion in market capitalization since February 19. Once the world’s second-most valuable public company, it has now fallen behind Microsoft and is worth about $800 billion less than Apple, which boasts a market cap of $3.6 trillion. Just in January, Nvidia briefly surpassed Apple in market value.
CEO’s Financial Setback Nvidia’s cofounder and CEO, Jensen Huang, saw his net worth drop by $10 billion to $99 billion on Monday, according to Forbes estimates. Huang, the 16th-richest person in the world, has seen his wealth shrink by about $24 billion since February 20.
Background Nvidia’s stock has fallen 13% since its earnings report last Wednesday and 18% since February 19, when the broader U.S. stock market began to lose steam. While Nvidia exceeded profit and revenue expectations for the fourth quarter and provided a strong sales forecast for the current quarter, some investors were unsettled by weaker-than-expected gross profit margins, as pointed out by UBS analyst Timothy Arcuri. Furthermore, fears of declining demand for Nvidia’s pricey technology have intensified, particularly after the release of the DeepSeek AI model from China, which could potentially threaten Nvidia’s dominance in the AI chip market.
Nvidia, once the poster child for the bull market of 2023 and 2024, is now facing headwinds as Wall Street’s risk appetite has cooled, and the broader market continues to adjust to new global economic uncertainties.
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