Nvidia Stock Has Fallen Over The Past Three Months: What's Going On?

Nvidia Corporation NVDA shares have faced extreme selling pressure over the last three months, down nearly 30% as of Tuesday. Here’s what you need to know.

What To Know: Yesterday Huawei announced plans to begin shipping its advanced 910C AI chip to customers in China as soon as next month. Huawei said it combined two 910B processors into a single unit using advanced integration methods, resulting in performance comparable to Nvidia's H100 chip.

Meanwhile, President Donald Trump's administration recently imposed licensing requirements on Nvidia's H20 chips sold to China, as well as any chips with equivalent performance. In addition to export restrictions, the Trump administration has placed tariffs reaching 145% on imports from China. China has retaliated with tariffs of 125% on U.S. goods.

Trump has also voiced concern that further tariff escalation could strain the U.S.-China relationship.

Huawei's new chip and added licensing requirements on certain chip sales to China may be fueling investor concerns about Nvidia's ability to maintain its foothold in the Chinese market. Tariffs and a deteriorating trade relationship could further threaten demand for the company's products in the region.

What Else: According to Wccftech, Nvidia is rumored to be partnering with Chinese artificial intelligence (AI) firm DeepSeek to develop custom chips tailored for the Chinese market.

The emergence of DeepSeek has prompted some investors to question the massive expenditures by American tech firms on AI development. DeepSeek claims it trained its R1 model for under $6 million, a stark contrast to the billions spent by U.S. companies.

Related Link: Here’s How Much $100 Invested In Marvell Tech 10 Years Ago Would Be Worth Today

NVDA Price Action: At the time of writing, Nvidia shares are trading 2.09% higher at $98.87, according to data from Benzinga Pro.

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