President Donald Trump’s decision to impose tariffs sent shockwaves through the U.S. tech sector. Nvidia’s stock plummeted nearly 9%, dragging down other major tech companies.
The tariff enforcement sparked concerns about rising inflation, potentially derailing the Federal Reserve’s plans for interest rate cuts. This significantly impacted interest-sensitive tech stocks.
Nvidia saw the steepest decline, with its shares falling 8.69% to close at $114.06 on Monday. This drop slashed its market capitalization to $2.783 trillion, pushing it to third place in market value rankings.
As of that day, Apple led the pack with a market cap of $3.575 trillion, followed by Microsoft at $2.888 trillion.
Adding to Nvidia’s woes, a Wall Street Journal report revealed that Chinese traders were circumventing U.S. export bans to acquire Nvidia’s Blackwell chips through third countries. This news fueled fears of tighter controls on Nvidia’s exports to China, contributing to the stock’s nearly 9% tumble.
This selloff extended across the tech sector. Apple lost 1.58%, Microsoft fell 2.14%, Amazon dropped 3.42%, Alphabet declined 2.07%, and Meta dipped 1.97%. Tesla also slid 2.84%, while Broadcom plunged 6.05%.
U.S. media outlets reported that Broadcom was exploring Intel Corporation’s chip manufacturing process.
Unlike Nvidia, Broadcom focuses on chip design rather than manufacturing, typically relying on Taiwan’s TSMC for production. However, given Intel Corporation’s perceived weaknesses in the foundry sector, Broadcom investors were skeptical about partnering with Intel Corporation. This skepticism contributed to Broadcom’s stock price plummeting over 6%, causing its market cap ranking to slip from 8th to 9th place.