Nvidia's 30% Slide Spook Investors: Here's Why the Tech Stock is Falling

Nvidia, the once poster boy of Wall Street, is now losing its shine in the stock market. On Monday, the stock plummeted over 5% on the tech-heavy index Nasdaq as concerns over the trade tiff between the US and China continued to spook investor sentiment.

Last week, the company CEO Jensen Huang mentioned that the Trump administration's 'reciprocal' tariff play can have a big impact on Nvidia. He told CCTV (a China-owned media company) that "the increased restrictions have impacted our company (Nvidia) significantly."

In the five trading sessions, the share price of the chip-maker has fallen over 16%, signalling worries around a blurry outlook.

Huang also added that the company "will continue to make significant efforts to optimize our products to comply with regulations and continue serving the Chinese market."

The US has already imposed export restrictions on Nvidia's AI chips, specially catered for the Chinese market, earlier this month. The Commerce Department's fresh regulations on licensing even triggered a crash in Nvidia's stock just last week. The new rule restricts exports of the H20 processor just as Nvidia was counting on building sales momentum in China.

China used to make up about 20% of Nvidia’s revenue, but that figure has now dropped to around 10%, according to Morningstar. The financial research company believes that the number might even fall to nearly zero, soon.

It's not just Nvidia

While Nvidia continues to dominate the chip-industry, which also made it Wall Street's darling last year, it's not alone in bearing the brunt of the trade tiff.

In the last 6 months, shares of Advanced Micro Devices Inc (AMD) have also witnessed a similar trajectory, plummeting over 45% on the Nasdaq. So far in 2025, the share price has dropped over 29%, trading around $85 price level from $120 recorded in January month. The trade war between China and the US might just make things worse for chip stocks and tech investors.

The broader semiconductor index, PHLX Semiconductor Sector has also plummeted over 9% or more than 370 points in the last 5 trading sessions.