Nvidia's stock is facing significant pressure due to a combination of factors impacting the semiconductor sector. The recent introduction of the Chinese AI platform DeepSeek has raised concerns about competition, as it offers similar capabilities at a fraction of the cost, potentially threatening Nvidia's market share. Additionally, the U.S. government's consideration of new import tariffs on goods from China, Canada, and Mexico is creating uncertainty in the tech supply chain, particularly affecting companies like Nvidia that have substantial revenue exposure to China. These developments have contributed to a broader selloff in semiconductor stocks, with Nvidia experiencing a notable decline.
Further compounding the situation, Nvidia's CEO Jensen Huang's recent meeting with President Donald Trump at the White House has added to the market's unease. The discussions reportedly centered around the future of chip subsidies, which could have significant implications for Nvidia's operations and profitability. The market's reaction reflects a shift in sentiment, as investors reassess Nvidia's growth prospects in light of these geopolitical and competitive challenges. Despite the current downturn, retail investors remain optimistic about Nvidia's long-term potential, as evidenced by continued bullish sentiment on platforms like Stocktwits.
The GraniteShares 2x Long NVDA Daily ETF (NVDL) has dropped to $44.74, marking an 8.75% decrease from its previous close.