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Rare Pullback in Semiconductor and AI Stocks Drags Down the Nasdaq

Stocks Fall Sharply

Rare Pullback in Semiconductor and AI Stocks Drags Down the Nasdaq

Published: by Omor IE

Key Points

  • Geopolitical volatility has caused many investors to de-risk portfolios.

  • Semiconductor stocks and many AI-related stocks have declined as a result.

  • Many other stocks have made big moves in both directions.

AI and chip-related stocks have surged in recent weeks, and sometimes they have carried the market up. In several trading sessions, semiconductor stocks and AI stocks were the only ones rallying. They’ve gained significantly in the past few weeks and quickly reversed a cyclical downturn into what looked like another unstoppable rally.

However, they’re seeing a rare decline today, with many big-cap stocks declining and dragging down the Nasdaq with them. This could be a one-off caused by recent de-risking due to a volatile geopolitical environment.

Currently, the market is not fully pricing in a scenario where the United States is involved in Iran. The White House relayed a message from President Donald Trump earlier, where he said he will decide within the next two weeks on whether or not to strike Iran. Investors have seen this as a final chance for Iran to sign a deal with the U.S. to avoid being struck.

Here’s a market update as of 11:20 AM (ET) today.

  • The S&P 500 is down 5.466 points, or 0.009%.
  • The Nasdaq Composite is down 94.39 points, or 0.48%.
  • The Dow Jones Industrial Average is up 96.23 points, or 0.23%.

AI and Chip Stocks Decline

  • Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL) is down 2.1%.
  • NVIDIA (NASDAQ: NVDA) is down 1.66%, and it has also lost its crown to Microsoft (NASDAQ: MSFT) of being the world’s biggest company by market capitalization.
  • Broadcom (NASDAQ: AVGO) is down 2.3%.
  • Accenture (NYSE: ACN) is down 6.1% due to bookings falling short of estimates.
  • Lam Research Corp (NASDAQ: LCRX) is down 4.4%.
  • KLA Corp (NASDAQ: KLAC) is down 4%.
  • Arista Networks Inc. (NYSE: ANET) is down 4%.

Notable Losers Today

  • Smith & Wesson Brands (NASDAQ: SWBI) is down 19% after FY 2025 earnings missed expectations. Revenue of $474.7 million missed analyst estimates by 2.4%, whereas EPS of $0.3 missed analyst estimates by 9.1%.
  • Capricor Therapeutics (NASDAQ: CAPR) is down 18.5% after key FDA officials overseeing therapies relevant to this company have been placed on administrative leave.
  • Aeva Technologies (NASDAQ: AEVA) is down 13.9%. A director sold a significant amount of the stock recently.
  • Mesoblast (NASDAQ: MESO) is down 9.6%.
  • Solid Power (NASDAQ: SLDP) is down 8.3%.

Notable Gainers Today

  • Gorilla Technology Group (NASDAQ: GRRR) is up 45.6% after the company reported $18.26 million in Q1 revenue, up 109%. EPS of $0.23 also marked a turnaround from a loss of $1.47 per share.
  • Couchbase (NASDAQ: BASE) is up 30%, as the company is being acquired by Haveli Investments for $1.5 billion.
  • GMS Inc. (NYSE: GMS) is up 27.5% as Home Depot and QXO are both showing a willingness to buy this company. QXO offered to buy it at $95.2 per share in cash. The supposed competing bid from Home Depot has not been confirmed with a specific per-share price.
  • Wheels Up Experience (NYSE: UP) is up 19% as the stock is marking a turnaround from earlier losses.
  • Oscar Health (NYSE: OSCR) is up 17.4% due to a new medical proposal. Lawmakers are apparently proposing a measure to allow individuals and employers to voluntarily enroll in a new version of Medicare.

The image featured at the top of this post is ©Spencer Platt / Getty Images News via Getty Images.

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