Nvidia Shares Tumble Amid Investor Concerns Over Future Growth

NEW YORK, N.Y. — Major U.S. stock indexes closed sharply lower on Thursday, with shares of Nvidia plunging 8.5% despite a better-than-expected earnings report. The decline came as investors reacted to President Donald Trump‘s announcement regarding tariffs, contributing to ongoing concerns about the economy.

The tech-heavy Nasdaq Composite fell 2.8%, marking its largest single-day drop in a month. Meanwhile, the S&P 500 and Dow Jones Industrial Average recorded losses of 1.6% and 0.5%, respectively. This downturn broke a four-session streak of heavy losses for both indices.

The stock market has been volatile recently, fueled by rising investor worries about economic health and uncertainty surrounding upcoming policies from the Trump administration. Trump revealed that new tariffs on products from Canada and Mexico would take effect on March 4, with an additional 10% tariff imposed on Chinese imports, intensifying inflation fears and potential impacts on global business.

Nvidia, a prominent AI chipmaker, reported unprecedented revenue and profit growth for its AI chips, topping analyst expectations. However, the company’s shares still dropped significantly as it appears the market had anticipated even more robust results. Following the announcement, Nvidia shares fell to about $120.

“It’s become routine for Nvidia to report impressive growth, yet the market always seems to want more,” Morgan Stanley analysts noted. Despite the drop, some analysts maintained an optimistic view, signaling long-term growth opportunities stemming from Nvidia’s strong demand for AI technology.

Investors showed a similar reaction to other semiconductor stocks, with Broadcom, Marvell Technology, and Micron Technology all experiencing declines. The iShares Semiconductor ETF dropped nearly 6%, indicating broader concerns within the tech sector.

In related movements, server maker Super Micro Computer, a critical partner of Nvidia, plummeted 16%, while energy providers Vistra and Constellation Energy faced declines of 12% and 8%, respectively, as they too grappled with the repercussions of the AI slowdown.

Other tech giants like Tesla, Apple, Microsoft, Amazon, and Alphabet saw their stock value dip as well. Tesla fell 3%, bringing its year-to-date loss to 30%. Salesforce shares dropped 4% after issuing a lackluster earnings outlook, and Dell Technologies fell 7% ahead of its upcoming report.

As Bitcoin prices experienced volatility, shares of MicroStrategy (now called Strategy) dropped 9% as the digital currency hit $84,400, down from a high of $87,000 earlier in the day. This decline reflected broader concerns regarding cryptocurrency markets and their potential impact on tech stocks.

The yield on the 10-year Treasury note increased to 4.27%, suggesting shifts in interest rate expectations as investors remained cautious. Economic data releases this week, particularly Friday’s jobs report, are critical as they may influence Federal Reserve decisions on interest rates.

Additionally, gold futures dipped 1.5% to $2,890 per ounce, while crude oil futures for West Texas Intermediate rose 2.2% to $70.15 per barrel.

This atmospheric uncertainty around AI investments and the economic landscape has led to swift sell-offs in recently favored tech stocks, with market participants seeking clarity as they navigate an increasingly unpredictable environment.