TLDR
- Nvidia (NVDA) shares declined 3% Friday with an additional 1% drop in Monday premarket trading amid Middle East tensions
- Taiwan Semiconductor Manufacturing dropped 4.2%, SK Hynix plunged 9.5%, and Samsung declined 7.8% in Asian markets
- Brent crude oil briefly spiked to $119 per barrel, reaching heights unseen since 2022
- The Dow Jones experienced its worst weekly performance since April 2025, dropping approximately 3%
- G7 officials convened Monday to evaluate potential IEA petroleum reserve releases
Shares of Nvidia experienced a 3% decline Friday and extended losses into Monday’s premarket session, swept up in widespread market volatility triggered by escalating oil prices and concerns about semiconductor supply chain vulnerabilities linked to Middle Eastern geopolitical tensions.
Premarket trading saw NVDA shares at $176.60, representing a 0.8% decrease. Year-to-date through Friday’s closing bell, the stock has retreated 4.7%.
The semiconductor sector felt widespread pressure, with AMD declining 3.52% and Broadcom slipping 0.69% in early trading. Chip stocks faced collective headwinds.
Market observers aren’t predicting immediate shutdowns of manufacturing facilities. Instead, analysts point to gradual margin compression from escalating energy and logistics expenses.
“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 globe’s dominant contract chipmaker, saw shares retreat 4.2% during Monday’s Taiwan trading session. The semiconductor giant consumes approximately 9% of Taiwan’s entire electrical grid, with natural gas serving as the island’s primary electricity generation source.
Korean semiconductor manufacturers experienced even steeper declines. SK Hynix plummeted 9.5% while Samsung Electronics tumbled 7.8% in Seoul. Both companies serve as critical memory chip suppliers to Nvidia.
Oil Shock Sends Futures Tumbling
Oil prices rocketed approximately 25% late Sunday, momentarily breaching $119 per barrel before moderating. West Texas Intermediate crude hovered near $103 while Brent traded above $107 — both maintaining roughly 15% gains.
The dramatic increase followed production cuts by major oil-producing nations, compounded by significant restrictions at the Strait of Hormuz. Kuwait acknowledged reducing output, while Iraqi production reportedly collapsed by approximately 70%.
Dow futures plummeted over 1,000 points during overnight trading before recovering somewhat. S&P 500 and Nasdaq 100 futures showed declines of 1% and 1.1% respectively Monday morning.
Futures partially rebounded on expectations that G7 ministers would orchestrate a coordinated IEA petroleum reserve release. Reports indicated the United States and two additional nations supported the initiative.
The previous week already proved challenging for equities. The Dow suffered roughly a 3% loss — marking its sharpest weekly decline since tariff concerns emerged in April 2025. The S&P 500 retreated approximately 2% while the Nasdaq concluded 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.
Market participants are closely monitoring Wednesday’s Consumer Price Index release and Friday’s PCE inflation data. However, these reports won’t fully reflect the recent oil price surge’s economic impact.
Nvidia’s upcoming major event is its GTC conference, scheduled for March 16–19. While the company plans to unveil new hardware products, macroeconomic volatility may dominate investor attention.
During Monday’s premarket session, NVDA traded at $176.60.
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