👉 Background: Nvidia, founded in 1993, is the computer chip company that has recently become the backbone of the AI industry. In fact, its share price has jumped almost more than 2,000% over the past 5 years, thanks to the AI boom.

👉 What happened: This week, Nvidia and other AI chipmakers saw their share prices drop from between 3%-11% after Donald Trump’s comments about Taiwan "Taiwan took our chip business from us. I mean, how stupid are we?”.

👉 What else: Next minute: Nvidia’s share price dropped 6.6%, wiping over $200 billion USD off its market cap. As unbeatable as the AI industry looks, it turns out that just took a couple of words from Trump can send the industry into a frenzy.

What's the key learning?

💡Comments made by politicians have the power to shift market expectations and influence industries.

💡Given AI is such a global hot topic right now, it’s also one of the most exposed industries when it comes to geopolitical conflict. In fact, according to research by Northeastern University, when Trump has tweeted about a company, there’s been a short-term increase in trading volume for that company’s stock.

💡 So it just goes to show that no industry is bullet-proof when it interacts with politics. Thankfully for AI chipmakers, companies generally see volumes and stock prices returned to pre-tweet levels a few days later.