By Adam Clark
Nvidia stock was edging higher early Tuesday as the chip maker looks to find its footing after a tariff-driven tumble the previous day.
The shares were up 0.9% at $115.05 in premarket trading. The stock fell 8.7% on Monday, closing at its lowest level since Sept. 18.
Among other chip makers, Advanced Micro Devices was rising 0.3% and Broadcom was gaining 0.6% in premarket trading, having also dropped the previous day.
The immediate trigger for the tumble across highly valued technology stocks was trade tensions. U.S. President Donald Trump's tariffs on items from Canada and Mexico are set to take effect Tuesday. The White House also said Trump had signed an executive order raising the tariff on Chinese goods to 20%.
On top of the broad tensions, the market looks to be worried about the possibility of further specific limits on chip exports to China. Nvidia could face a complete ban on all artificial-intelligence chips being shipped to Chinese customers, at a cost of between $4 billion and $6 billion in revenue for its current fiscal year, according to Vijay Rakesh of Mizuho in a research note on Monday.
Write to Adam Clark at adam.clark@barrons.com
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March 04, 2025 05:14 ET (10:14 GMT)
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