- Nvidia‘s (NVDA) stock fell 2.70% to $114.10 in early trading Thursday, adding to a 15% year-to-date decline. The chipmaker, with a $2.86 trillion market cap, is grappling with AI demand concerns and ongoing supply chain challenges..
- Marvell Technologies (MRVL) and MongoDB Inc. (MDB) saw declines of nearly 17% to below $75 and 22% to $206.77, respectively, despite beating Q4 earnings, reflecting broader tech sector concerns overriding positive financials.
- Broadcom (AVGO) and Palantir (PLTR) also weakened, falling 4.17% to $183.80 and nearly 5% to $85.71, respectively, amid a market reassessing tech valuations against regulatory and macroeconomic risks.
The tech sector is facing a turbulent period as several key players experience significant declines in their stock prices during early trading on Thursday, March 06, 2025. Nvidia (NVDA), a leading chipmaker with a market capitalization of $2.86 trillion, is seeing its shares drop by 2.70% to $114.10, contributing to a year-to-date loss of 15%. This downturn reflects broader concerns within the AI and semiconductor industries, where sentiment has shifted due to persistent fears over demand, supply chain disruptions, and regulatory uncertainties. Bernstein analyst Stacy Rasgon noted earlier this week that Nvidia and its AI-semiconductor peers have been “battered by a storm of growth fears, supply chain noise, and tariff and regulatory risks,” highlighting the challenging environment these companies are navigating. February marked Nvidia’s worst monthly performance since July 2022, underscoring the intensity of the current pressures.
Meanwhile, Marvell Technologies (MRVL), another prominent microchip manufacturer, is grappling with a steep decline of nearly 17%, pushing its stock price below $75. This drop comes despite the company exceeding Q4 expectations, reporting earnings of $0.60 per share and revenue of $1.82 billion—a robust 27.4% increase year-over-year. The disconnect between Marvell’s solid financial results and its stock performance suggests that investor concerns extend beyond individual company metrics to broader sectoral headwinds. Similarly, MongoDB Inc. (MDB), a database provider, is witnessing a dramatic 22% plunge to $206.77. This decline persists despite the company surpassing Q4 estimates by $0.62 per share, beating revenue forecasts, and issuing Q1 EPS guidance above Wall Street’s consensus. These examples illustrate a market dynamic where positive earnings are being overshadowed by macroeconomic and industry-specific anxieties.
Other tech giants are not immune to the downturn. Broadcom (AVGO), set to release its earnings after the market close, is experiencing a 4.17% drop to $183.80, reflecting pre-results jitters and the broader tech malaise. Palantir (PLTR), meanwhile, is down nearly 5% to $85.71. Although the company has gained nearly 14% year-to-date, its recent 23% loss over the past month indicates a sharp reversal in momentum. The tech sector’s struggles are multifaceted, with AI demand uncertainties playing a central role. Nvidia, as a bellwether for AI-driven semiconductor growth, has been particularly hard-hit by skepticism about the sustainability of AI investments, despite its critical role in powering advancements in machine learning and data processing.
The broader context of these declines points to a tech market in flux. Investors appear to be reassessing valuations and growth prospects amid a confluence of risks. Supply chain challenges, exacerbated by global trade tensions and potential tariffs, continue to loom large, particularly for chipmakers like Nvidia, Marvell, and Broadcom, whose operations span multiple continents. Regulatory risks, including scrutiny over AI applications and data management, add further complexity, impacting companies like MongoDB that serve data-intensive industries. While Palantir’s year-to-date gains suggest some resilience, its recent slide aligns with the sector’s cooling sentiment. As Rasgon observed, the pivot in investor confidence is palpable, with the AI group bearing the brunt of this shift. Thursday’s early trading session encapsulates a critical moment for tech stocks, where even strong fundamentals are proving insufficient to stem the tide of broader market unease.
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