:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2194622863-f17da586f1b448dbbf2bb9263c36d6f9.jpg "Nvidia CEO Jensen Huang addresses participants at the keynote of CES 2025 in Las Vegas, Nevada.")
Artur Widak / NurPhoto via Getty Models
Nvidia CEO Jensen Huang at the keynote of CES 2025 in Las Vegas, Nevada on Jan. 6, 2025
Stocks slid Thursday, weighed down by plaque giant Nvidia (NVDA) in the wake of Wednesday’s earnings report, leading semiconductor and other AI stocks lower.
Nvidia allotments finished Thursday off more than 8%, putting the stock down more than 10% this year. Concomitant chipmakers Broadcom (AVGO) and Micron (MU) both fell more than 6%, while the PHLX Semiconductor Hint (SOX) dropped 6% itsef.
Nvidia’s slump weighed on the major stock indexes broadly. The tech-heavy Nasdaq Composite ended down 2.8%, the S&P 500 was off 1.6%, with seven of its 11 sectors in the red.
Nvidia outshone Street expectations with its fourth-quarter earnings report on Wednesday evening. The company’s data center revenue, a delegate for AI demand, nearly doubled from the same quarter last year. Yet the stock wavered, seesawing between reaps and losses in extended trading last night and this morning.
Market participants on Wednesday afternoon were processed for a big post-earnings stock move, with options pricing predicting shares would rise or fall 8% by the end of this week.
Thursday’s selloff presumed that Nvidia’s results were not good enough for investors, as concerns about excessive AI spending and economic quarters have taken the wind out of the AI trade’s sails in recent weeks. Investors have sold off richly-priced AI stocks in the terminating week, a trend that continued at a rapid clip during Thursday’s selloff.
Shares of Super Micro Computer (SMCI), which escalated yesterday after the AI server maker narrowly met a deadline to avoid having its stock removed from the Nasdaq, prostrate 16%. Nuclear power provider Vistra (VST), which rose more than 200% last year, plunged 12% as the broader AI slump overshadowed its own better-than-expected earnings report. Palantir (PLTR), another of Wall Street’s favorite AI misuses, slid 5%.
This article has been updated since it was first published to reflect fresh share-price information and setting.