Nvidia stock was sliding on Monday as investors’ recession fears overshadowed more signs that demand for the artificial-intelligence chip maker’s products remains sky-high. Shares slipped 2.4% to $110.

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Trump said TSMC’s plans would create “many thousands” of high-paying jobs and described the production of AI chips within the US as a “matter of economic security” for the country.

Chipsets known as graphics processing units (GPUs) are perhaps the most important hardware in generative AI development right now. For the last couple of years, investing in semiconductor stocks has generally been a great idea -- as you're nearly guaranteed some form of exposure to GPUs or data centers.

Foxconn, which assembles iPhones for Apple and also produces Nvidia's artificial intelligence servers, said the model is based on Meta's Llama 3.1 architecture

Nvidia, which made $26 billion in a quarter due to data centre demands, is not only a big player in the gaming space but in general computing, with its chips powering servers, robotics, and AI. Though this stock dip is substantial, it's worth noting that Nvidia stock is up 50% from this time last year and up over 400% from just two years ago.

Nvidia’s chips are primarily manufactured by TSMC in Taiwan; however, some systems and computers utilizing these chips are produced in other regions, including Mexico.

The aggressive tariff plans prompted a broader market pullback, as concerns over trade restrictions sent stocks reeling and the Dow plunging more than 600 points.

Nvidia thrives amid AI and data center growth, fueled by $300B in investments from tech titans by 2025. Learn more about NVDA stock here.

Today, Zacks Investment Ideas feature highlights Taiwan Semiconductor TSM, Apple AAPL, Nvidia NVDA and AMD AMD. Buy Taiwan

Buyers in approved countries, like Taiwan and Malysia, are buying Nvidia Blackwell chips and selling a portion of them to Chinese companies.