By Adam Clark
Nvidia was dropping early on Thursday as the chip maker contends with market concern over tariffs and worries about its business in China.
Nvidia shares were down 0.8% at $112.82 in premarket trading, while futures tracking the S&P 500 index were up 0.1%. The stock fell 5.7% on Wednesday.
President Donald Trump's announcement of the imposition of 25% tariffs on automotive imports to the U.S. could intensify worries about similar levies on semiconductors. Trump has repeated his intention to place tariffs on chips coming into the U.S., which could include imports from Taiwan where Nvidia's most advanced hardware is manufactured.
The stock's slide also comes amid mounting concerns over Nvidia's business in China. The U.S. on Tuesday added dozens of Chinese companies to a trade blacklist over national security concerns. The targets included subsidiaries of Inspur, China's largest server maker and a buyer of Nvidia chips.
Meanwhile, Microsoft dropped two data center projects in the U.S. and Europe in the last six months due to forecast supply outstripping demand, TD Cowen analysts wrote in a research note on Wednesday. However, the analysts noted that Google-parent Alphabet and Facebook-owner Meta Platforms picked up some of the freed capacity.
Among other chip makers, Advanced Micro Devices was falling 2.4% and Broadcom was flat in premarket trading.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
March 27, 2025 06:22 ET (10:22 GMT)
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