Nvidia (NVDA) and other chip stocks fell in early trading Thursday as the artificial intelligence trade faltered. Shares of the AI chipmaker were down more than 2% in recent trading. Advanced Micro Devices (AMD), Qualcomm (QCOM), and TSMC (TSM) also experienced declines, along with shares of Nvidia partners such as Supermicro (SMCI), Dell (DELL), and Micron Technology (MU). Shares of Broadcom (AVGO), which is set to report earnings after the bell, were down more than 3%, pulling the PHLX Semiconductor Index down 2%. Marvell Technology (MRVL) shares plunged 17% after its outlook failed to impress, while the tech-heavy Nasdaq fell 1%. Uncertainty about the impact of new U.S. tariffs weighed on stocks, along with concerns over tightening chip export curbs and competition from China. Alibaba unveiled its latest AI reasoning model, which it claimed rivals offerings from DeepSeek and ChatGPT maker OpenAI, causing its shares to climb about 1%. Meanwhile, shares of Palantir (PLTR) dropped about 3.5%, nearly wiping away Wednesday’s gains. Jefferies analysts highlighted insider sales, with Palantir CEO Alex Karp moving to sell shares worth another $45 million in the last two weeks after dumping over $2 billion worth in 2024. — news from Investopedia
