Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares fell more than 5% on Monday amid new regulatory restrictions, increased competition in the artificial intelligence (AI) chip market, and escalating US-China trade tensions.
The US government recently prohibited Nvidia from selling its H20 AI chips to China, a move expected to cost the company billions and intensify concerns about slowing AI investment and broader economic uncertainty.
Additionally, it was revealed that Huawei plans to begin mass shipments of its new 910C AI chip to Chinese clients as soon as next month. This challenges Nvidia’s dominance in the Chinese AI chip market, especially after the recent H20 export ban.
The drop in Nvidia’s stock is also part of a broader tech sector downturn, with volatility amid ongoing uncertainty from global trade tensions, notably the escalating tensions between the US and China over tariffs.
Shares of Nvidia were down 5.2% at about $96 on Monday morning. They have fallen 28.5% in the year to date.