NVIDIA (NVDA) enters the U.S. trading day under pressure after its shares fell in European trading, with the XETRA-listed NVD.DE closing at €156.30, down €5.64, or 3.48%, at the close on January 19. The slide highlights investor unease ahead of Wall Street’s reopening on Tuesday, January 20, following the Martin Luther King Jr. Day holiday. The weakness in NVIDIA stock reflects the geopolitical risk after Trump’s Tariff threat on European countries over Greenland. Besides, Elon Musk announced that Tesla is nearing completion of its next-generation AI5 chips and restarting its Dojo 3 supercomputer program.
“Now that the AI5 chip design is in good shape, Tesla will restart work on Dojo3,” Elon Musk tweeted on X.
European investors moved first to reduce exposure, sending NVIDIA lower alongside other technology heavyweights. With Wall Street and the NYSE reopening after a long weekend, U.S. traders are now preparing for a potentially volatile session as overseas signals filter into domestic markets.
Trump’s Greenland Tariff Threat Rattles Eu Tech Sentiment
The immediate catalyst came from Washington. President Donald Trump renewed tariff threats against several European Union nations, including Denmark, Germany, and France, tying trade penalties to stalled negotiations over Greenland. Trump said a 10% tariff could take effect as early as February 1, with the rate potentially rising to 25% by June if no agreement is reached.
Europe (EU) markets reacted swiftly, with semiconductor and AI-related stocks bearing the brunt of the sell-off. NVIDIA, heavily exposed to global supply chains and European enterprise demand, became an early casualty. Investors fear that retaliatory measures or prolonged trade uncertainty could disrupt capital spending and technology exports across the region.
“Greenland Premium” Adds New Geopolitical Risk to Markets
The tariff rhetoric unsettled investors not only because of its economic impact, but also because it injected fresh uncertainty into U.S.–Europe relations. Greenland has emerged as the geopolitical flashpoint, and markets are now attaching a “Greenland premium” to stocks most sensitive to transatlantic trade flows.
The pressure extended beyond NVIDIA. Shares of ASML fell sharply in Europe, while Alphabet also traded lower, signaling broader unease across the global technology sector. For U.S. investors, the concern is whether political risk could begin to weigh on earnings visibility in 2026. NVIDIA’s H200 is also facing major supply-chain disruptions, driven by renewed and increasingly stringent, yet unclear import restrictions in China.
Elon Musk Throws A Surprise Move At Nvidia
Elon Musk made a surprise move by confirming that Tesla is nearing completion of its next-generation AI5 chips and restarting its Dojo 3 supercomputer program. Tesla (TSLA) has long relied on NVIDIA hardware for AI training and inference, but Musk’s announcement signaled a renewed push toward internal self-reliance.
For NVIDIA shareholders, the message was uncomfortable. Some of the company’s largest customers are actively exploring alternatives to NVIDIA’s dominant AI accelerators, raising questions about long-term customer concentration risk, even as near-term demand remains strong.
Physical AI Battle Heats Up: Alpamayo Vs. Tesla Ai5
The timing is delicate. NVIDIA CEO Jensen Huang has repeatedly highlighted a “ChatGPT moment for physical AI,” pointing to rapid adoption in robotics and autonomous driving. At CES 2026, NVIDIA unveiled Alpamayo, a reasoning-focused AI model designed specifically for autonomous vehicles and edge AI workloads.
Tesla’s AI5 and its roadmap toward AI6 target the same domain. Meanwhile, Dojo 3 is positioned as a large-scale training system intended to compete with NVIDIA’s H100 and Blackwell platforms. While NVIDIA still leads in performance and ecosystem depth, the competitive narrative is shifting.
What to watch when Wall Street Reopens
As Wall Street reopens, investors will be focused on three key factors: whether NVIDIA stock stabilizes after its European dip, how seriously markets take Trump’s tariff threat tied to Greenland, and whether Musk’s announcements alter long-term assumptions about NVIDIA’s competitive moat.
NVIDIA remains a cornerstone of the AI economy, but Tuesday’s session may test how much geopolitical and competitive risk investors are willing to absorb at current valuations.
