The sharp downturn in Nvidia’s stock follows its meteoric rise to a peak of $153.13 per share on January 7. Since then, the artificial intelligence and semiconductor leader has lost roughly a fifth of its market capitalization, particularly as economic uncertainty looms following President Donald Trump’s inauguration.
The sharp downturn in Nvidia’s stock follows its meteoric rise to a peak of $153.13 per share on January 7. Since then, the artificial intelligence and semiconductor leader has lost roughly a fifth of its market capitalization, particularly as economic uncertainty looms following President Donald Trump’s inauguration.
The tech-heavy Nasdaq Composite has slid more than 4% in the past week, hitting a six-month low on Monday. Concerns over new tariffs targeting overseas manufacturing and supply chains have weighed heavily on technology stocks, sparking fears of a U.S. recession—a possibility Trump did not rule out over the weekend.
Tesla led the sell-off among the so-called Magnificent Seven, plunging more than 9% on Monday. The electric vehicle maker, backed by Elon Musk, has suffered a 16% decline over the past week and is now down nearly 44% since January. Tesla is also coming off its longest losing streak in company history.
Major tech firms Apple, Alphabet, and Meta Platforms each dropped more than 5%, while Microsoft and Amazon fell roughly 3% each. The Technology Select Sector SPDR Fund entered correction territory, down more than 13% from its peak.
The semiconductor sector has been particularly hard-hit by recent trade policies. Last week, Trump announced an additional $100 billion investment from Taiwan Semiconductor Manufacturing Co., touting the company as the “most powerful” in the world. However, the move did little to bolster investor confidence, as concerns over geopolitical risks and rising production costs continue to rattle chip stocks.
The VanEck Semiconductor ETF has plunged 16% since the inauguration, with Monday’s session seeing another 4% decline. Major chipmakers Marvell Technology and Broadcom dropped more than 6% each, while Micron Technology fell 5%.
As investors brace for more volatility, Wall Street remains cautious about the near-term outlook for tech stocks, with many watching for policy shifts that could stabilize the sector.
Sara Montes de Oca is the Editor in Chief of TechEchelon. Previously a correspondent and producer in Washington, D.C., covering business, finance, and politics.
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