NEW YORK, Jan 20, 2026, 4:17 PM EST — After-hours
Nvidia Corp (NVDA) shares dropped $8.07, or 4.3%, to close at $178.20 on Tuesday, weighed down by renewed tariff fears sparked by President Donald Trump. Investors also remained wary amid reports questioning the company’s capacity to export its H200 AI chip to China. During the session, the stock fluctuated between $177.84 and $182.88.
The chipmaker now stands as a key gauge for AI investment, with its downturns often sending shockwaves across the semiconductor sector. Traders, therefore, view geopolitics and export regulations as immediate market forces, not just background noise.
All three major U.S. indexes tumbled after Trump threatened new import tariffs on eight European countries starting Feb 1, with the rate jumping to 25% on June 1 unless the U.S. secures a deal to buy Greenland. The S&P 500 dropped 2.04%, and the Nasdaq slipped 2.38%. The VIX volatility index — known as Wall Street’s “fear gauge” — surged to a two-month peak as investors sought safer assets, moving away from stocks. Still, Jamie Cox, managing partner at Harris Financial Group, said he wasn’t seeing signs that investors were fleeing. Ahead lie key updates: third-quarter U.S. GDP figures, January PMI business surveys, the Fed’s favored inflation measure—the PCE report—and earnings from Intel and Netflix. (Reuters)
Taiwan’s Inventec said the fate of Nvidia’s H200 AI chip in China “appears to be stuck on the China side,” Inventec President Jack Tsai said at a Taipei press conference. Tsai noted the issue “depends on the political direction” and stressed the company must comply with regulations. The U.S. cleared the chip for export to China last week, albeit with conditions. Yet Reuters reported Chinese customs officials told agents the chip isn’t allowed to enter the country. The H200 ranks as Nvidia’s second most powerful AI chip. (Reuters)
Broadcom dropped 5.4%, Microsoft slipped 1.1%, AMD held steady, and Intel gained 3.5% as other AI-related stocks followed the market’s lead.
Morgan Stanley downgraded its North American IT hardware outlook to “cautious” in a separate call, pointing to weaker enterprise demand and rising component prices. (Reuters)
Nvidia made a notable appearance in venture funding as well. AI startup Humans& announced it secured $480 million in a seed round, pegging its valuation at roughly $4.48 billion, with Nvidia listed among the backers. CEO Eric Zelikman explained the model is designed to “coordinate with people, and other AIs” to enhance collaboration. (Reuters)
For NVDA, the key issue now is whether we’ll see clear guidance on China customs and the specifics surrounding U.S. export approvals for advanced AI chips. The direction of tariffs also plays a crucial role, given that the stock acts as a barometer for global growth.
The downside is straightforward. If the H200 remains stuck or the tariff dispute escalates into a full-blown trade war, investors might begin downgrading near-term data-center demand and scaling back on the sector’s most expensive stocks.
Nvidia’s upcoming catalyst is its Q4 fiscal 2026 earnings report, set for Feb. 25. Investors will focus on any updates regarding shipments to China, ongoing supply chain issues, and if customers are maintaining their spending into 2026. (NVIDIA Investor Relations)
