TLDR
- Nvidia (NVDA) fell 3% Friday and was down 1% in premarket Monday following Middle East conflict fears
- TSMC dropped 4.2%, while SK Hynix and Samsung fell 9.5% and 7.8% respectively in local trading
- Oil prices surged past $100 a barrel, with Brent crude briefly topping $119 — levels not seen since 2022
- The Dow lost roughly 3% last week, its steepest weekly drop since April 2025
- G7 ministers met Monday to discuss releasing petroleum reserves from the IEA
Nvidia stock fell 3% on Friday and continued sliding in premarket Monday, caught in a broader market selloff driven by surging oil prices and fears over chip supply chain disruption tied to conflict in the Middle East.
The stock was trading at $176.60 in premarket, down 0.8%. It’s now off 4.7% for the year through Friday’s close.
AMD fell 3.52% and Broadcom dropped 0.69% in the premarket. The whole chips sector took a hit.
The concern isn’t that chip factories will go dark overnight. Analysts are flagging a slower burn — energy and transportation costs rising and squeezing margins over time.
“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 of Circular Technologies. “Semiconductor fabrication facilities are extremely energy intensive and any sustained increase in electricity or fuel prices can affect manufacturing economics.”
TSMC, the world’s largest chip manufacturer, fell 4.2% in Taiwan on Monday. The company accounts for roughly 9% of Taiwan’s total electricity use, and gas is the island’s single largest power source.
South Korean firms took an even harder hit. SK Hynix dropped 9.5% and Samsung Electronics fell 7.8% in Seoul trading. Both supply memory components directly to Nvidia.
Oil Shock Sends Futures Tumbling
Oil prices surged around 25% late Sunday, briefly topping $119 a barrel before pulling back. WTI crude was trading near $103 and Brent above $107 — both still around 15% higher on the day.
The spike came after crude-producing nations cut output, worsened by the near-closure of the Strait of Hormuz. Kuwait confirmed production cuts, and Iraqi output reportedly plunged about 70%.
Dow futures fell more than 1,000 points overnight before trimming losses. S&P 500 and Nasdaq 100 futures were down 1% and 1.1% respectively as of Monday morning.
The pullback in futures came partly on hopes that G7 ministers would coordinate a release of IEA petroleum reserves. The US and two other countries were reported to be backing the move.
Last week was already rough. The Dow lost roughly 3% — its steepest weekly drop since tariff fears hit in April 2025. The S&P 500 slid about 2% and the Nasdaq finished down over 1%.
What’s Next for Nvidia
Trump’s comment that high oil costs were “a very small price to pay” for security rattled markets on Sunday, though Monday’s IEA reserve talk helped calm some nerves.
Investors are also watching Wednesday’s Consumer Price Index and Friday’s PCE index readings. Neither will fully capture the impact of the recent oil surge just yet.
Nvidia’s next scheduled event is its GTC conference, running March 16–19. The company is expected to show off new hardware, though broader economic concerns may steal the spotlight.
As of Monday premarket, NVDA was trading at $176.60.
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