Trump’s Tariffs Take Aim at Nvidia

NVIDIA Faces Its Biggest Crisis Yet

AI chips stocks were rocked today as President Trump unveiled sweeping tariffs targeting AI chips produced in Taiwan, sending shockwaves through the tech sector. The tariffs, ranging from 2.5% to 100%, are set to directly hit NVIDIA, the AI chip titan, which relies on Taiwan for 90% of its chip production, according to its latest 10-Q filing.

The market responded with swift and brutal judgment: NVIDIA’s stock plummeted 17% today, marking the largest single-day decline in the company’s history, and is now down 22% from its recent record high.

Why Are These Tariffs So Devastating?

NVIDIA’s reliance on Taiwan Semiconductor Manufacturing Company (TSMC) is no secret—it’s the backbone of their AI chip supply chain. However, few investors appreciated just how exposed NVIDIA was to geopolitical risks until today. With these tariffs, the company now faces skyrocketing costs unless it moves production to U.S. soil, as stipulated in Trump’s directive.

“This is not just a speed bump for NVIDIA—it’s a seismic shift,” said Greg Crennan of Golden Coast Consultants. “Trump’s tariffs have weaponized NVIDIA’s greatest strength—its dominance in AI chip production—against it, turning reliance on Taiwan into a liability overnight.”

Unpacking NVIDIA’s Latest 10-Q: The Warnings Investors Ignored

The clues were hiding in plain sight. NVIDIA’s most recent 10-Q filing (the picture below) repeatedly flagged the potential risks of trade restrictions and tariffs, but these warnings went largely unnoticed in the frenzy over its meteoric growth.