Nvidia (NVDA, Financial) has seen its stock decline 10% since its Q3 earnings report last week, despite posting impressive results. The company recorded a 94% year-over-year revenue increase to $35 billion, bolstered by a 112% surge in its AI-driven data center segment. However, concerns over decelerating growth overshadowed these gains.

• Warning! GuruFocus has detected 4 Warning Signs with NVDA.

The chipmaker guided that Q4 sales will be $37.5 billion, an increase of 70% YoY compared to the triple-digit growth rate in the year's first three quarters. This cut back on growth-enhanced market volatilities such as those portrayed by the perceived threats of trade tension between the USA and China. President-elect Donald Trump's proposal to slap tariffs on Mexican and Chinese imports, including semiconductors, can affect Nvidia's supply chain. Even though these specific tariffs' effects are yet to be established, experts have cautioned that barometers of trade may hugely impact semiconductors.

Nvidia's CEO committed to regulation compliance in the future, but there are still unknowns. Some analysts blame the current downdraft on profit-taking, mainly because Nvidia has gained nearly 200% this year. However, selling the stock points to a new reality of lower expectations despite the firm's financial and operational performance in its stock.

Investors are following upcoming events with keen interest related to US and Chinese trade policies and the firm's capacity to maintain its growth rate in the face of increasing pressure.

This article first appeared on GuruFocus.