TLDR
- Nvidia (NVDA) declined 3% Friday with another 1% drop in Monday premarket amid Middle East turmoil
- TSMC shares tumbled 4.2%, SK Hynix plunged 9.5%, and Samsung dropped 7.8% in Asian markets
- Crude oil prices jumped beyond $100 per barrel, with Brent temporarily hitting $119 — highest since 2022
- The Dow experienced approximately 3% weekly losses, marking its worst performance since April 2025
- G7 officials convened Monday to explore potential IEA petroleum reserve releases
Shares of Nvidia experienced a 3% decline Friday and extended losses during Monday’s premarket session, swept up in widespread market weakness fueled by escalating oil costs and anxiety around semiconductor supply chain vulnerabilities linked to Middle Eastern instability.
Premarket trading showed the stock at $176.60, representing a 0.8% decrease. Through Friday’s closing bell, Nvidia has surrendered 4.7% year-to-date.
The semiconductor sector faced widespread pressure as AMD retreated 3.52% and Broadcom declined 0.69% during premarket hours.
The primary anxiety doesn’t center on immediate production shutdowns. Instead, market watchers are highlighting a more gradual threat — escalating energy and logistics expenses that could compress profit margins progressively.
“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, holding the title as the globe’s premier chip foundry, saw shares sink 4.2% during Monday’s Taiwan trading session. The semiconductor giant consumes approximately 9% of Taiwan’s entire electrical grid output, with natural gas serving as the primary electricity generation source for the island.
South Korean semiconductor manufacturers absorbed even steeper declines. SK Hynix shares plummeted 9.5% while Samsung Electronics retreated 7.8% in Seoul. Both corporations serve as critical memory component suppliers for Nvidia’s products.
Oil Shock Sends Futures Tumbling
Oil prices rocketed approximately 25% late Sunday, momentarily surpassing $119 per barrel before moderating. WTI crude hovered near $103 while Brent maintained levels above $107 — representing roughly 15% daily gains for both benchmarks.
The dramatic price movement followed production reductions by major crude-exporting nations, compounded by severe restrictions at the Strait of Hormuz. Kuwait acknowledged implementing production cuts, while Iraqi output reportedly collapsed by approximately 70%.
Dow futures plunged over 1,000 points during overnight trading before recovering somewhat. Monday morning showed S&P 500 and Nasdaq 100 futures down 1% and 1.1% respectively.
Futures moderated partially on speculation that G7 ministers would orchestrate coordinated IEA petroleum reserve deployments. Reports indicated the United States plus two additional nations were endorsing the strategy.
The previous week delivered significant losses already. The Dow surrendered roughly 3% — representing its most severe weekly decline since tariff anxieties emerged in April 2025. The S&P 500 retreated about 2% while the Nasdaq concluded with losses exceeding 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 also monitoring Wednesday’s Consumer Price Index release and Friday’s PCE index data. However, neither report will completely reflect the consequences of the recent oil price acceleration.
Nvidia’s upcoming major event is its GTC conference, scheduled for March 16–19. The chipmaker is anticipated to unveil new hardware innovations, though macroeconomic headwinds may dominate investor attention.
As of Monday’s premarket session, NVDA was changing hands at $176.60.
