Topline
Nvidia shares fell Monday, diving further into correction territory despite reporting stronger-than-expected headline earnings last Wednesday, as the artificial intelligence leader headlines broader stock market losses as investors reassess risks tied largely to President Donald Trump’s tariffs.
Traders work on the New York Stock Exchange floor Monday.
Key Facts
Nvidia stock fell 8.7% to about $114 per share, closing at its lowest share price since mid September.
Catalyzing the Monday drop was a report from The Wall Street Journal on Chinese buyers skirting U.S. export controls on Nvidia’s highly sought after AI chip technology, with Trump’s afternoon vow to implement 25% tariffs on Canadian and Mexican imports accelerating an across-the-board selloff Monday.
Nvidia led broader losses Monday, as the benchmark S&P 500 fell 1.8% and the tech-concentrated Nasdaq dropped 2.6%, with most of the losses trailing Trump’s afternoon announcement that the tariffs will take effect Tuesday.
The S&P closed Monday at its lowest level since Jan. 14, the Nasdaq notched its lowest close since Nov. 4 and the Dow Jones Industrial Average, which declined 1.5% (640 points) Monday, sank to its lowest price since Jan. 16.
The S&P and Nasdaq are down 4.8% and 8.5% from their respective all-time closing highs set Feb. 19.
Monday was the S&P’s biggest percentage loss of 2025.
Surprising Fact
The bellwether S&P has given up almost all of its post-election gains, closing just 1.2% above where it stood Election Day, excluding dividends. The index is down 2.5% from Trump’s second inauguration.
Big Number
More than $600 billion. That’s how much market capitalization Nvidia has lost since Feb. 19. Nvidia lost its mantle as the world’s second most valuable public company Monday, slipping behind Microsoft. Nvidia is worth about $800 billion less than Apple, which has a market capitalization of $3.6 trillion. Nvidia was worth more than Apple as recently as January.
Forbes Valuation
Nvidia cofounder and CEO Jensen Huang’s net worth fell by $10 billion to $99 billion Monday, according to our estimates. Huang, who is the 16th-richest person in the world, has gotten about $24 billion poorer since Feb. 20, when he was the 11th-wealthiest person.
Key Background
Shares of Nvidia have declined 13% since last Wednesday’s earnings report and 18% since Feb. 19, before the U.S. stock market began to deflate. The poster child of 2023’s and 2024’s bull market, Nvidia has become the face of the recent pullback as Wall Street’s risk appetite weakens. Nvidia exceeded consensus estimates for fourth-quarter profit and revenue and guided for higher sales during the current quarter than analysts expected. But the report left investors “a couple things to pick at,” noted UBS analyst Timothy Arcuri, including weaker gross profit margins. And pick they did, as Nvidia stock declined 8.5% in the first trading session following earnings. Nvidia is the undisputed market leader in designing the semiconductor technology powering the generative AI revolution, but it received a significant ding in the eyes of investors in January as the release of the efficient DeepSeek AI model from China stoked fears about softer demand for Nvidia’s expensive technology.
Further Reading
Chinese Buyers Are Ordering Nvidia’s Newest AI Chips, Defying U.S. Curbs (The Wall Street Journal)
Nvidia Earnings: AI Giant Brought In $39 Billion During Fourth Quarter—Smashing Forecasts (Forbes)
