Summary
Nvidia, the technology company behind popular components and gaming devices like the Nvidia RTX line of graphics cards, has seen a significant drop of $200 billion in its valuation. The shift meansNvidiais trading at its lowest levels since September 2024.
Recently declared themost valuable company, Nvidia’s valuation shift is a significant one, and it’s not the only company or industry feeling the pinch in early March. The stock market in general has taken a hit since the start of the week, with the Dow falling about 670 points in a single day, and both the S&P 500 and Nasdaq Composite also experiencing fall-offs.
Thestock market and Nvidia changescome following plans for tariffs on non-American-made products going into effect. Initially planned to begin back in February, the tariffs were temporarily delayed until March 4, and have now officially begun. The tariffs could potentially impact Nvidia’s business, and its stocks have taken a hit accordingly, seeing a significant loss leading to a new valuation of $2.79 trillion, down from $3 trillion. While Nvidia manufacturers some of its chips in Taiwan, which isn’t subject to the tariffs at this time, it assembles some products in places like Mexico.President Trump has enacted 25% tariffson products coming out of both Canada and Mexico.
President Trump Tariffs and Impact on Nvidia and its Customers
While Nvidia’s shares have fallen followingPresident Trump’s tariffsgoing into effect, the company is still doing better overall than it was in recent history. Six months ago, shares of Nvidia were as low as $103, whereas at market close on March 4, they were priced at $116. Looking further back indicates an even greater trend, with Nvidia shares being as little as $6.65 back in 2020, meaning the company’s shares have grown in value by over 1600% since then, even with the recent downturn.
However, there are still concerns that could impact matters further. If Taiwan were subjected to tariffs, Nvidia’s stock could continue to face difficulties. On the consumer side of matters, the manufacturing and assembly of products made outside of the United States will mean customers will end up spending more money on these items. Gamers have worried that the cost of GPUs, computer components, and evenconsoles like the PS5could soon rise, potentially mirroring the prices during the chip shortage that occurred during the pandemic. While the tariffs are intended to encourage US citizens to buy products made in the United States, there aren’t always US-based equivalents available. Where the prices and stock market go from here remains to be seen, but this could be just the beginning of the impact.
