Why is Nvidia stock going down?

What's going on with Nvidia?

Nvidia's stock has shown significant growth in recent years, driven by increased interest in artificial intelligence technologies and high demand for the company's products. According to CNBC, on October 14, 2024, Nvidia's stock reached a record closing price of $138.07, and its market capitalization approached $3.4 trillion. 

However, at the beginning of 2025, Nvidia's stock experienced a significant correction. As of March 6, 2025, the stock price stands at $117.30, reflecting a decline from previous highs. 

These figures indicate the high volatility of Nvidia's stock, which requires investors to conduct careful analysis and take a thoughtful approach when making investment decisions.

Main reasons for the decline in Nvidia's stock

Why is Nvidia stock going down today? Nvidia's stock has sharply dropped in recent days, causing concern among investors. Let’s break down the key factors that have impacted the company's stock price drop.

Introduction of tariffs on imports from Canada and Mexico.

Tariffs on Canadian and Mexican imports. In March 2025, Nvidia shares fell nearly 9% after US President Donald Trump confirmed that 25% tariffs on Canadian and Mexican imports would soon go into effect. This caused a significant drop in the entire stock market, with the Dow Jones index falling 800 points (-1.8%) and the Nasdaq Composite losing more th

Loss of market capitalization.

Due to the stock decline, Nvidia lost a significant portion of its market capitalization, shrinking from $3 trillion to $2.79 trillion. In just one day, the company’s losses amounted to $265 billion.

Company’s reaction to tariffs

Nvidia's CFO, Colette Kress, stated that the impact of the tariffs is still unknown, and the company is waiting for further clarification from the U.S. government. Nvidia chips are primarily manufactured in Taiwan, but many of their systems and computers are assembled in Mexico and the U.S., which may expose them to additional taxation.

Suspicion of bypassing export controls

Nvidia has come under scrutiny due to its exports to Singapore, which could be used as a transit point for shipping chips to China, thereby bypassing U.S. sanctions. Last week, authorities in Singapore detained three individuals for providing false information about the end-users of U.S.-made servers.

Investor expectations and earnings report impact

Although Nvidia’s quarterly revenue grew by 78% year-on-year, reaching $39.33 billion, the company’s stock has fallen by more than 13% since the earnings report was published. Analysts are concerned about the company’s future growth prospects.

Rise in competition

Tech giants such as Amazon and Broadcom are actively developing their own chips for artificial intelligence, which reduces the market's reliance on Nvidia’s solutions.

Manufacturing plans

Nvidia stated that it would produce its chips as part of a $100 billion expansion of Taiwan Semiconductor Manufacturing’s U.S. factories, announced by Trump.

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Conclusion

The decline in Nvidia's stock is due to a combination of factors, including a slowdown in AI investments, increased competition, regulatory risks, and trade restrictions. We’ve covered why Nvidia’s stock is going down. However, the Pocket Option platform offers opportunities for trading in any market conditions, allowing traders to profit from both rising and falling asset prices.