TLDR
- Nvidia stock drops 0.8% in premarket trading as Trump tariff deadline creates market anxiety
- Company sits just $25 billion away from record $3.915 trillion market cap milestone
- Semiconductor sector faces broad selloff with AMD, Broadcom, Intel, and Qualcomm all declining
- Nvidia previously warned of $15 billion sales hit from U.S. chip export restrictions to China
- Partner Foxconn reports record revenue but flags macroeconomic headwinds as concerns
Nvidia stock stumbled in Monday’s premarket trading as investors grappled with mounting concerns over President Trump’s looming tariff deadline. The AI chip giant fell 0.8% to $158.07 ahead of the opening bell.
The decline comes at a crucial time for Nvidia. The company sits tantalizingly close to a historic market milestone, with its Thursday closing market cap of $3.89 trillion just $25 billion shy of Apple’s record $3.915 trillion peak from late December.
But tariff fears are casting a shadow over the semiconductor sector. The S&P 500 futures dropped 0.4%, reflecting broader market jitters about Trump’s universal tariff promises.
Nvidia isn’t alone in feeling the pressure. Advanced Micro Devices slid 1.3% in premarket trading. Broadcom fell 0.8%, while Intel dropped 1.2% and Qualcomm declined 0.6%.
The semiconductor selloff reflects genuine concerns about trade policy impacts. Nvidia CEO Jensen Huang previously warned investors that U.S. export restrictions on chips to China could slash $15 billion from company sales.
Market Leadership Under Pressure
Despite Monday’s wobble, Nvidia has emerged as the world’s most valuable company in 2025. The chip maker surpassed both Apple and Microsoft to claim the crown, with its market value approaching the $4 trillion threshold.
This meteoric rise stems from Nvidia’s dominance in AI infrastructure. Major tech companies like Microsoft, Amazon, and Meta rely heavily on Nvidia’s chips to power their AI operations.
The company has been busy expanding its technological edge. At VivaTech 2025, Huang unveiled the GB200 Grace Blackwell superchip, a breakthrough design combining GPUs and CPUs for large language model training.
Nvidia is mass-producing these superchips at an impressive rate of 1,000 units per week. This production scale underscores the company’s manufacturing prowess and market demand for its AI hardware.
Beyond Chips Into Robotics
Nvidia is pushing beyond traditional semiconductors into new frontiers. The company recently introduced AEON, a humanoid robot developed with Sweden’s Hexagon, signaling its robotics ambitions.
This move represents Nvidia’s strategy to lead the next wave of intelligent machines. The company is positioning itself as more than just a chip supplier.
Partner companies are also showing mixed signals. Foxconn, which does business as Hon Hai Precision Industry, reported record second-quarter revenue on Saturday.
However, the Taiwanese manufacturer flagged macroeconomic and geopolitical conditions as potential headwinds. Exchange-rate fluctuations also pose challenges for the company’s operations.
Foxconn’s Taipei-listed shares closed slightly lower on Monday. This performance reflects the cautious sentiment spreading through the tech supply chain.
Insider Activity and Export Restrictions
Nvidia insiders have been active sellers during the stock’s remarkable run. Company executives, including CEO Huang, have sold over $1 billion in stock as shares hit record highs.
The selling activity reflects profit-taking opportunities at elevated valuations. However, it also demonstrates confidence in the company’s long-term prospects.
Export restrictions continue to create headwinds for Nvidia’s China business. The U.S. government is planning further AI chip export curbs to countries like Malaysia and Thailand.
These restrictions aim to prevent indirect shipments to China. They directly impact Nvidia’s supply chain and market strategy in Asia.
The company is navigating export license requirements for its H20 AI chip destined for China. Despite these challenges, Nvidia continues to grow revenues and maintain strong stock performance.
Nvidia is also launching AI factory stacks with partners like HPE to accelerate industrial AI adoption. This initiative extends the company’s reach beyond gaming into industrial applications.
The company’s recent stock performance hit all-time highs, breaking previous peaks and fueling optimism about ongoing AI demand.
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