On Jan. 27, Nvidia ( NVDA -3.67%) fell 17%, erasing over $590 billion from its market cap. It marked the greatest single-day market-cap destruction for a company in U.S. stock market history. While the growth stock recovered nearly half of those losses the following day, there are still lessons to be learned from this historic market event.

Semiconductor companies with significant exposure to China, including Nvidia Corp. (NVDA), Broadcom Inc. (AVGO), and Applied Materials Inc. (AMAT), saw their shares fall in pre-market trading Monday.

The U.S. stock market sold off Monday as Wall Street digested President Donald Trump’s tariffs on Canadian, Chinese and Mexican goods set to go into effect Tuesday, though much of the losses were concentrated in Michigan’s auto sector and Silicon Valley.

The chip maker's shares were falling with the wider market after the U.S. president said he intends to impose levies on imported semiconductors.