Shocking 17% Losses Recorded by Nvidia Amid AI Concerns 😱📉

Market Movements: Key Highlights of the Day 📰

Stay informed about the significant shifts in the market, which have influenced various sectors today. This year, stocks are experiencing intriguing fluctuations, marked by sharp declines and notable gains across different industries. Here’s a detailed look at some major companies and their movements.

Tech Sector Reaction to New AI Model 🤖

Nvidia, a prominent player in the tech industry, experienced a steep decline of nearly 17%. This downturn stemmed from concerns surrounding the performance of a language model from a Chinese startup, DeepSeek. The situation has generated doubts regarding the substantial investments made in artificial intelligence (AI). This scenario sets Nvidia on a path for its lowest performance day since March 2020.

Other Semiconductor Firms:
- Broadcom saw its stocks drop by over 17%.
- Micron suffered a decline exceeding 11%.
- Advanced Micro Devices (AMD) experienced a fall of more than 6%.
- The VanEck Semiconductor ETF (SMH) retreated by nearly 10%.

Major Tech Companies Struggle 📉

Leading tech giants Microsoft and Oracle joined the downward trend. Microsoft’s stocks fell by more than 2%, while Oracle faced a larger drop of about 13%. Investors are expressing concerns over whether these companies’ significant investments in AI data centers will yield desired returns.

Microsoft Insights:
- The company announced plans to invest $80 billion in constructing data centers.
- Approximately 50% of this investment targets projects in the United States.
Oracle’s Ventures:
- Oracle supports the AI infrastructure initiative known as Stargate, recently introduced by former President Donald Trump.

Energy Sector Challenges ⚡

Energy companies associated with AI data center development faced significant declines as well. Constellation Energy’s stocks dropped over 20%, while Vistra tumbled by 28%. Additionally, GE Vernova and Talen Energy both fell by more than 21%, reflecting broader market concerns.

Crypto Market Reactions 📊

The cryptocurrency sector reflected the pressure stemming from falling tech stocks. Companies reliant on Bitcoin’s performance also faced downturns.

Crypto-Related Stocks:
- Coinbase’s shares fell by more than 6%.
- MicroStrategy experienced a decrease of over 1%.
- Bitcoin mining firms sustained more drastic losses:
  - Core Scientific crashed by over 29%.
  - TeraWulf also fell by more than 29%.
  - Iren, previously known as Iris Energy, saw a decline exceeding 24%.

Telecommunications Earnings Report 📞

AT&T’s shares experienced a boost, rising by over 6% following the announcement of its fourth-quarter adjusted earnings, which came in at 54 cents per share. This amount surpassed the expected 50 cents estimated by analysts. Additionally, the company reported a revenue of $32.3 billion, exceeding the $32.02 billion consensus estimate.

Financial Services Update 💼

On the other hand, SoFi Technologies faced a drop of 10.3%, triggered by a disappointing outlook for the first quarter. This overshadowed the company’s otherwise better-than-expected earnings and revenue results.

Travel and Retail Sector Movements ✈️👗

Travel + Leisure witnessed a modest rise of over 2% after receiving a double upgrade from Bank of America, which now rates it as a ‘buy’ from ‘underperform’. The firm projects the company’s potential for double-digit earnings per share growth this year, supported by a robust leisure travel environment.

Titan Machinery:
- Stocks surged by 10.4% after an upgrade from Baird to outperform from neutral, aided by decreasing inventories.
Exelixis:
- This biotechnology stock rose slightly by over 1%, buoyed by Morgan Stanley’s upgrade to overweight from equal weight, citing a favorable valuation.
Ralph Lauren:
- The apparel company faced a decline of 3.2% after a downgrade, attributed to limited upside following its recent stock rally and impacts from a strengthening U.S. dollar.