As Trump's tariffs goes into effect, Nvidia loses over $200 billion in valuation

Donald Trump’s proposed tariffs were previously reported to hit the gaming industry hard. Now his recent announcement solidifying the decision has set back Nvidia by over 200 billion. This is because despite the company being based in the US many of its components are assembled outside including Mexico which faces the 25% tariff.

As reported by PC Gamer, the company saw a massive dip of 9% in stock price marking another significant loss the company faced this year. The company which was once valued at over $3 trillion, now stands at $2.79 trillion which is down by 12% compared to last week.

Following DeepSeek AI, Trump Tariffs hit Nvidia

Prior to this, Nvidia faced the largest stock drop in history in January following the release of China’s DeepSeek AI mode. Matching various top AI models, DeepSeek poses a threat to making Nvidia’s expensive GPUs useless. The company was just starting to recover and now faces another crisis which may very well be permanent.

The company recently launched the RTX 5000 series of GPUs which are already having issues maintaining stock. With hardware shortages and scalpers hoarding the remaining GPUs, the situation also does not look great for gamers as the supply can also run dry or simply result in overpriced graphics cards.

Also Read: Nvidia RTX 50 series GPU still struggling with pricing and stock

Nvidia is not alone in this situation

Since the increased tariff is a go by the US government, hardware, and physical games will also be affected. A lot of them are imported from Mexico and China, which faces the aforementioned increased import tariffs. Game Industry Analyst ‘Mat Piscatella’ says it wouldn’t be surprising for companies to simply ditch the physical game releases and go with digital-only releases moving forward.