Nvidia’s shares fell nearly 9% on Mar. 3 after US President Donald Trump confirmed new tariffs on imports from Canada and Mexico, set to begin Mar. 4.

This drop contributed to a broader market downturn, with the Dow Jones falling 800 points (1.8%) and the Nasdaq declining over 3%.

Nvidia’s market value decreased by about US$265 billion to US$2.79 trillion, marking a sharp decline from its US$3 trillion valuation.

The company has now lost 13% since last Feb. 26 despite reporting strong earnings, with revenue rising 78% year-over-year to US$39.33 billion.

The 25% US tariffs could impact Nvidia’s operations, as some of its systems are manufactured in the US, Mexico, and other regions.

Despite these challenges, Nvidia remains optimistic. CEO Jensen Huang highlighted the company’s AI advancements and upcoming Blackwell chips, stating that previous issues have been resolved and strong performance is expected next quarter.

Nvidia also plans to produce chips as part of Taiwan Semiconductor’s US$100 billion expansion in the US, a project mentioned by Trump.

Recent Nvidia developments