Key Takeaways
- Nvidia (NVDA) shares declined 3% Friday with an additional 1% drop in Monday premarket amid Middle East tensions
- Major chip suppliers saw steep losses: TSMC down 4.2%, SK Hynix plunged 9.5%, Samsung fell 7.8% in Asian markets
- Crude oil prices rocketed past $100 per barrel, with Brent briefly hitting $119 — the highest since 2022
- The Dow Jones suffered approximately 3% decline last week, marking the largest weekly loss since April 2025
- G7 officials convened Monday to explore releasing strategic petroleum reserves through the IEA
Nvidia shares tumbled 3% during Friday’s session and extended losses into Monday’s premarket trading, swept up in a widespread market downturn fueled by skyrocketing oil prices and mounting concerns about semiconductor supply chain vulnerabilities linked to Middle Eastern hostilities.
Premarket trading showed the stock at $176.60, representing a 0.8% decline. Year-to-date through Friday’s closing bell, NVDA has retreated 4.7%.
The semiconductor sector experienced broad weakness, with AMD shedding 3.52% and Broadcom declining 0.69% in premarket activity.
Market watchers aren’t sounding alarms about immediate production shutdowns. Instead, analysts point to a more gradual threat — mounting energy and logistics expenses that could compress profit margins progressively.
“For the technology sector the immediate risk is not a direct interruption in semiconductor production but a broader inflationary impact through energy and transportation costs,” wrote Brad Gastwirth of Circular Technologies. “Semiconductor fabrication facilities are extremely energy intensive and any sustained increase in electricity or fuel prices can affect manufacturing economics.”
TSMC, the globe’s dominant semiconductor foundry, lost 4.2% during Monday’s Taiwan trading session. The chipmaking giant consumes approximately 9% of Taiwan’s entire electricity grid, with natural gas representing the island’s primary power generation source.
South Korea’s semiconductor giants experienced even steeper declines. SK Hynix plummeted 9.5% while Samsung Electronics retreated 7.8% in Seoul. Both manufacturers serve as critical memory chip suppliers for Nvidia’s products.
Energy Crisis Triggers Market Selloff
Oil prices exploded approximately 25% late Sunday evening, momentarily breaching $119 per barrel before moderating. WTI crude hovered near $103 while Brent maintained levels above $107 — representing roughly 15% gains for the session.
The dramatic price surge followed production cuts by major crude-exporting nations, compounded by significant disruptions at the Strait of Hormuz. Kuwait verified output reductions, while Iraqi production reportedly crashed by approximately 70%.
Dow futures plunged over 1,000 points during overnight trading before recovering somewhat. S&P 500 and Nasdaq 100 futures registered declines of 1% and 1.1% respectively heading into Monday morning.
The partial futures recovery gained momentum on speculation that G7 officials would orchestrate a coordinated release from IEA strategic petroleum stockpiles. Reports indicated the United States and two additional nations supported the initiative.
The previous week delivered punishing losses across major indices. The Dow surrendered roughly 3% — representing the most severe weekly decline since tariff anxieties emerged in April 2025. The S&P 500 retreated about 2% while the Nasdaq concluded the period down over 1%.
Nvidia’s Outlook Amid Market Volatility
Trump’s assertion that elevated oil prices represented “a very small price to pay” for security objectives unsettled markets Sunday, though Monday’s IEA reserve discussions provided some stabilization.
Market participants are closely monitoring Wednesday’s Consumer Price Index release and Friday’s PCE inflation data. However, neither report will completely reflect the recent oil price surge’s economic impact.
Nvidia’s upcoming calendar features its GTC conference, scheduled for March 16–19. The company plans to unveil new hardware innovations, although overarching economic headwinds may dominate investor attention.
As of Monday’s premarket session, NVDA was changing hands at $176.60.
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