By Adam Clark
Nvidia stock was dropping early Monday as fears rose about potential disruption to the chip supply chain from conflict in the Middle East.
The chip maker's shares were down 1.3% at $175.46 in premarket trading. The stock has fallen 4.7% this year so far through Friday's close.
The move was in line with the wider market, especially the chips sector. Fellow semiconductor companies Advanced Micro Devices and Broadcom were both down more than 1% in the premarket. Taiwan Semiconductor Manufacturing, a key supplier to all three companies, fell 4.2% in local trading in Taiwan.
"For the technology sector the immediate risk is not a direct interruption in semiconductor production but a broader inflationary impact through energy and transportation costs," wrote Brad Gastwirth, global head of research and market intelligence at Circular Technologies, in a research note. "Semiconductor fabrication facilities are extremely energy intensive and any sustained increase in electricity or fuel prices can affect manufacturing economics."
So far, the hardest-hit companies have been in Asia. Much of the region is heavily dependent on oil and gas supplies that are normally shipped through the Strait of Hormuz, which is currently effectively blocked due to the conflict in Iran.
South Korean chip companies SK Hynix and Samsung Electronics, both of which are key suppliers of memory components to Nvidia, fell 9.5% and 7.8%, respectively, in local trading in Seoul.
The next likely catalyst for Nvidia is its GTC conference, being held from March 16-19. The chip maker is expected to show off some significant hardware innovations, but they could be overshadowed by wider economic fears.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
March 09, 2026 05:40 ET (09:40 GMT)
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