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Shares of Nvidia (NVDA, Financial) have plunged about 5% on Monday morning, extending a post-earnings selloff that began last week. The decline pushed the stock to roughly $118.92, leaving it more than 20% below its all-time high reached in early January. Concerns over slowing artificial intelligence spending and the potential impact of tightening chip export policies have weighed on investor sentiment.
Mizuho analysts warned Friday that Nvidia could face significant new China AI and export license restrictions, potentially reducing revenues by $4 billion to $6 billion in the second half of the year. Their caution comes amid reports that the Trump administration is set to tighten chip export curbs, with new tariffs scheduled to take effect Tuesday. The administration has also raised tariffs on products from Canada and Mexico and doubled the tariff on Chinese goods.
Despite these headwinds, some analysts remain bullish due to strong AI demand. Investors will closely watch next week's key economic indicators.
This article first appeared on GuruFocus.