Nvidia shares fell over 2% in early trading, following a slump in artificial intelligence (AI) chip stocks. Advanced Micro Devices (AMD), Qualcomm (QCOM), and TSMC were also lower. The tech-heavy Nasdaq fell 1%, while Broadcom’s shares dropped 3% ahead of its earnings report.
Uncertainty about new US tariffs weighed on stocks, along with concerns over tightening export curbs and competition from China. Alibaba’s latest AI reasoning model has raised worries about the impact on chip makers. Palantir shares slid 3.5% after the company’s software was seen as a potential boost for government spending cuts.
The rest of the Magnificent Seven – Apple, Microsoft, Alphabet, Amazon, Tesla, and Meta – remained little changed or fell slightly. The decline follows a volatile stretch in big tech, which has erased all gains since November’s presidential election.
Source: https://www.investopedia.com/nvidia-broadcom-and-other-chip-stocks-drop-thursday-as-ai-trade-falters-11692103