Nvidia’s stock plunged more than 4% following reports that the Trump administration is considering tightening export controls on artificial intelligence (AI) chips to China.
On Wednesday, Nvidia shares dropped 4.10%, closing at $123.70 on the New York Stock Exchange. This decline shaved the company’s market value to $3.029 trillion, barely holding on to the $3 trillion mark.
The steep drop came after a Bloomberg report suggested that the Trump administration is weighing additional restrictions on AI chip exports to China, prompted by recent developments at Chinese AI firm DeepSeek.
Just two days prior, Nvidia’s stock had already taken a 17% hit after news emerged that DeepSeek had developed a chatbot that outperformed U.S. competitors while using significantly fewer AI chips.
DeepSeek is reportedly able to create a superior chatbot at a fraction of the cost—just one-twentieth—of what American companies spend.
This revelation has raised concerns over the potential overvaluation of U.S. tech stocks, triggering a broad sell-off in the sector, with Nvidia among the hardest hit.
In response to growing tensions, the Trump administration is reportedly considering further tightening restrictions on semiconductor exports to China.
As a result, Nvidia’s stock continues to face downward pressure, with the shockwaves from DeepSeek’s success reverberating throughout the market.