NVIDIA Shares Drop Amid Renewed US-China Trade Tensions

Nvidia Corporation’s stock fell sharply as trade tensions between the US and China reignited. Shares closed at $135.13, down 2.92%, with after-hours trading pushing the price further to $134.52. The decline followed President Trump’s accusation that China violated a recent trade agreement, sparking broader market unease.

The tech sector bore the brunt of the sell-off, with the Nasdaq slipping 0.3%. US plans to expand restrictions on China’s technology industry added fuel to the fire, despite recent tariff reductions that were hailed as a historic breakthrough.

Nvidia faces particular headwinds from its China exposure. While largely insulated from April’s import taxes due to its Taiwan-Mexico supply chain, the company stands to lose $8 billion in Q2 from banned chip sales to China. CEO Jensen Huang acknowledged leaving billions in revenue on the table.

Despite these challenges, Nvidia’s Q1 performance exceeded Wall Street expectations. Investors now look ahead to the August 27 earnings report for signs of how the chipmaker will navigate these turbulent trade waters.