Nvidia wiped $1 trillion from its market cap since Trump took office

Though the stock market was strong through 2024, its best period came after Donald Trump was confirmed as the new President-Elect of the United States in early November. 

Nvidia (NASDAQ: NVDA) – already an undisputed star for investors – benefited particularly from the rally, as it accelerated a rise that enabled it to gain $2.1 trillion within the 12 months and increase from $1.223 trillion at the end of 2023 to $3.355 trillion by the end of 2024.

Though the initial weeks of 2025 appeared just as strong, and the excitement for Donald Trump’s inauguration was palpable in the rise of Nvidia’s market capitalization from $3.271 trillion on January 17 to $3.448 trillion on January 22. 

Subsequent months have, however, witnessed almost a $1 trillion crash, per the information Finbold retrieved from CompaniesMarketCap using the Wayback Machine.

Specifically, after hitting a $3.448 trillion valuation on January 22 – mere days after Trump re-entered the White House – NVDA stock began a long and steep decline, which has ensured the semiconductor giant’s valuation, at press time in the morning of April 21, is $2.474 trillion.

Why Nvidia stock is crashing in 2025

A series of systemic risks have driven the decline, though most of them have been directly tied to President Donald Trump’s escalating trade war. Though April has been particularly turbulent across the board thanks to the Liberation Day announcement and the subsequent reciprocal tariff delay, NVDA share price took particular damage.

On the one hand, Nvidia’s China business was called into question on the news that Beijing is considering an advanced chip ban over environmental concerns, and was turned into an outright first-quarter (Q1) writedown once the U.S. commander-in-chief outright banned the sale of advanced hardware to the People’s Republic.

Why NVDA stock’s crash is likely to continue

Nvidia’s global dominance was further questioned when Huawei unveiled its advanced 910C artificial intelligence (AI) chip for the domestic market, revealing shipments would start in early May.

Lastly, thanks to the latest macroeconomic and semiconductor industry developments, NVDA shares appear to be headed even lower, having fallen to $98.27 by press time after a 3.17% decline in the Monday pre-market.

Featured image via Shutterstock