Market Update: Chip Stocks Gain as Tesla, Palantir, CrowdStrike Tumble

Published: June 4, 2025 by Omor IE

Key Points

Chip stocks have continued gaining today.
Other stocks in the AI hardware theme have also gained.
There are many other stocks in the market making big moves in both directions today.
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Chip stocks have continued strengthening today. Many are recovering to highs, whereas others are reaching new peaks due to solid demand. The tariff spook did cause many of the chip stocks to fall earlier, but the rally has returned, and chip stocks are mainly why the stock market is up so far today.

The broader market has been more mixed. The S&P 500 Communication Services sector has been the strongest performer, followed by the Health Care and Information Technology sectors. The Materials sector is also up, likely due to steel and aluminum tariffs being doubled yesterday. Conversely, the Utilities and Energy sectors have been the two biggest losers so far this session.

Here’s a market update as of 11:30 AM (ET) today.

The S&P 500 is up 9.22 points, or 0.15%.
The Nasdaq Composite is up 50.42 points, or 0.25%.
The Dow Jones Industrial Average is up 34.49 points, or 0.08%.

Chip Stocks Continue Gaining

ON Semiconductor (NASDAQ: ON) is up 6.7%. The CEO has a positive outlook and said the company is seeing recovering demand.
NXP Semiconductors (NASDAQ: NXPI) is up 3.9%.
Seagate Technology (NASDAQ: STX) is up 3.1%. It is not a semiconductor company, but it fits neatly into the AI hardware theme.
Broadcom (NASDAQ: AVGO) is up 1.5%.
Texas Instruments (NASDAQ: TXN) is up 1.5%.

Notable Gainers Today

Yext, Inc (NYSE: YEXT) is up 28% after reporting strong earnings. EPS came in at $0.12 and beat the $0.11 consensus. Revenue came in at $109.48 million and beat estimates by 1.73%. This company disappointed analysts in earlier quarters, so Yext starting to beat estimates is bullish.
Applied Digital (NASDAQ: APLD) is up 21.9%. The company is continuing to gain after the $7 billion data center deal with CoreWeave (NASDAQ: CRWV).
Guidewire Software (NYSE: GWRE) is up 18.6% after strong Q3 results. EPS came in at $0.88 and beat estimates by 91.3%. Revenue rose 22%. The FY 2025 revenue outlook was also raised.
Rev Group (NYSE: REVG) is up 16.6%. It posted solid earnings results. EPS came in at $0.7 vs. the consensus of $0.57. Revenue came in at $629.1 million vs. expectations of $603 million.
Redwire (NYSE: RDW) is up 15% after receiving NASA approval to advance “cutting-edge manufacturing technology for building infrastructure on Moon and Mars”.

Notable Losers Today

Asana (NYSE: ASAN) is down 17.8%. Revenue growth slowed, and there are retention rate headwinds. It wanted that its retention rate could take more hits.
Neogen (NASDAQ: NEOG) is down 16.9% after it said there are transistory headwinds that will impact its Q4 gross margin.
Abacus Global Management (NASDAQ: ABL) is down 16.6% after a short-seller report by Morpheus Research.
Next Technology (NASDAQ: NXTT) is down 12%. It is cooling off from a massive rally back in May.
Karooooo (NASDAQ: KARO) is down 8.7%.

Tesla (NASDAQ: TSLA), CrowdStrike (NASDAQ: CRWD), and Palantir (NASDAQ: PLTR) are down in the low single digits. Tesla’s May sales fell in European markets, whereas CrowdStrike’s revenue guidance came in weak. Palantir’s drop is mainly due to technical reasons.