Why Nvidia Stock Is Sinking Again Today

Nvidia (NASDAQ: NVDA) stock is starting this week's trading off with another round of sell-offs. The company's share price was down 4.1% as of noon ET Monday amid a 2% decline for the S&P 500 (SNPINDEX: ^GSPC) and a 3.2% decline for the Nasdaq Composite (NASDAQINDEX: ^IXIC). The stock had been of as much as 5.8% earlier in trading.

President Trump recently declined to rule out the possibility of a recession this year, and investors are selling out of Nvidia and other growth-dependent artificial intelligence (AI) stocks in response. But Nvidia investors actually did get some good news today.

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Nvidia stock tumbles on recession concerns

President Trump was asked in an interview on Fox News over the weekend if he anticipated a recession this year. He said, "I hate to predict things like that. There is a period of transition, because what we're doing is very big."

The statement from the president came on the heels of other comments from him indicating there could be periods of economic disruption due to new tariff policies and other initiatives.

While Trump has generally indicated that economic choppiness stemming from the implementation of his policies will be short-lived and relatively minimal, the market hates uncertainty -- and bearish sentiment is on the rise following his response when asked about the possibility of a recession. Nvidia stock is now down roughly 20% across 2025's trading.

However, there is a silver lining for Nvidia today

Taiwan Semiconductor Manufacturing (NYSE: TSM) published its February sales update this morning, reporting sales of roughly $7.91 billion for the period. While the performance marked an 11.3% sequential decline from January's sales, it was also up 43.1% year over year. TSMC's sales are now up 39.2% year over year across the first two months of this year.

TSMC is the leading manufacturer of AI chips and other high-performance semiconductors, and it handles the chip fabrication for the key chips in Nvidia's advanced processors. This means strong performance for TSMC is a bullish indicator for Nvidia.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.