Nvidia’s Stock Journey Amidst Political Changes
Nvidia has been one of the most-watched stocks on Wall Street for the past few years, with investors riding high on the AI boom and bullish price targets that once stretched as far as $200. But the story has taken a sharp turn in recent months, especially since Donald Trump returned to the Oval Office.
January 21, 2025: A Notable Trading Day
Let’s rewind to January 21, 2025—Trump’s first full trading day back in office. Nvidia (NASDAQ:NVDA) closed at $140.83, fresh off a strong run and buoyed by analyst optimism.
If you had invested $1,000 in Nvidia at that price, you’d have picked up just over 7 shares. As of the market close on April 16, those shares would be worth around $104.49 each, putting your investment at roughly $743, a -25.7% drop in just under three months.
Nvidia’s Value Decline
Nvidia has lost about a quarter of its value year-to-date. After peaking at $149 in early January, the chipmaker has faced mounting pressure from shifting US-China trade dynamics to growing regulatory scrutiny, with the stock notably dipping as low as $94 in early April before recovering slightly.
Political Pressures and Market Reactions
While Trump has made supportive remarks about Nvidia in public, policy decisions out of Washington have told a different story. The most recent hit came when Trump announced a ban on Nvidia’s H20 chip exports to China despite the chip being specifically designed to comply with previous export restrictions under the Biden administration.
That news rattled markets, and NVDA shares have not responded well.
Nvidia’s Diplomatic Efforts in China
In response, Nvidia CEO Jensen Huang made a high-profile visit to Beijing today. According to insiders, Huang met with key Chinese partners, including the founder of generative AI startup DeepSeek, and held talks with Vice Premier He Lifeng.
China is “a very important market,” Huang said, emphasizing the company’s desire to continue working with Chinese firms. Despite the growing list of restrictions, Nvidia appears committed to designing new chips tailored for the Chinese market even if previous attempts have already been blocked.
Financial Implications and Future Outlook
On Tuesday, Nvidia disclosed it expects a $5.5 billion hit to earnings due to the new restrictions, raising fresh questions about the company’s long-term strategy in China and how it plans to navigate increasingly complex geopolitics.
Investors who saw Trump’s return to office as a potential tailwind for the broader stock market may be feeling a little whiplash.
While some sectors have rallied, Nvidia’s steep decline serves as a reminder that tech, especially semiconductor stocks remains tightly tethered to global policy moves.
The road ahead is likely to remain bumpy. But with Nvidia’s leadership actively engaging in high-stakes diplomacy and continuing to innovate, the long-term outlook is far from written off.
