Trade War Fears Hit Nvidia: Semiconductor Stocks Take a Big Hit

Trade war fears hit Nvidia. Visit CDS to learn how Trump's statements affected semiconductor stocks.

11 October 2025, 15:42 published Updated 11 October 2025, 15:43

Trade War Fears Hit Nvidia: Trump Declares China Unfriendly

Leading graphics processor maker Nvidia’s stock dropped 3% during the afternoon trading session. The decline occurred after concerns of a trade war were rekindled by President Donald Trump’s threat of a significant rise in tariffs on Chinese imports. Trump said in a social media post that China was turning unfriendly, which caused the market to tremble. The semiconductor industry, which mainly depends on international supply chains and Chinese sales, was particularly severely impacted.

Philly Semiconductor Index Drops as Trade Concerns Mount

Trump‘s announcement caused a 3.4% decline in the Philadelphia SE Semiconductor index. This development exacerbates already-existing issues, such as the recent increase of rare earth export restrictions by Beijing and the ongoing antitrust investigation into Qualcomm’s purchase of Autotalks. A growing trade spat between the two biggest economies in the world might disrupt chipmakers’ supply and demand, which is why investors are being cautious.

CEO Jensen Huang Boosts Nvidia Sentiment With AI Expansion Strategy

The shares of Nvidia are highly erratic. In the past year, there have been 18 swings of more than 5%. Within that framework, today’s action suggests that the market views this news as significant, but not enough to drastically alter its opinion of the company.

When it was announced that investment company Cantor Fitzgerald had increased its price objective, the stock rose 3%. Strong faith in the company’s potential for growth in artificial intelligence is evident in this action. While maintaining an overweight rating, the company raised its price objective from $240 to $300. Following discussions in which Jensen Huang, the CEO of Nvidia, and other executives outlined their plans for the continuous expansion of AI infrastructure, this decision was made. Huang added that the demand for computing had increased significantly, which further bolstered the bullish sentiment.