March 10 - NVIDIA (NVDA, Financial) has shed approximately $1 trillion in market capitalization since reaching a record high earlier this year, falling out of the coveted $3 trillion club. The tech giant's shares have slid more than 20% since the start of the year, fueling investor anxiety.
Investor concern intensified on Jan. 27 when the market wiped about $589 billion from NVIDIA's value after DeepSeek introduced its AI model R1. The new model, designed to build large language models on tight budgets without heavy human oversight, has raised doubts over its actual investment and viability.
The recent sell-off accelerated as President Trump's intensified tariff rhetoric on China, Canada, and Mexico added to market jitters. Industry peers, including Apple (AAPL, Financial) and Microsoft (MSFT, Financial), are also under scrutiny as investors worry about China's efforts to bypass export restrictions on advanced chips.
NVIDIA's shares plunged 9.8% over the last 5 days, reducing its market capitalization to nearly $2.7 trillion on Mar 10, 2025. Despite the assurances from the U.S. government, analysts cautioned that mounting geopolitical and business pressures could keep the tech titan under bitter stress. ‘What the shift in this landscape means for the semiconductor industry in the long term is going to be a little difficult,' said experts.
