Global Stock Markets Plunge, Led by Tech Sector Declines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 23 2026
0mins
Source: CNBC
- Tech Sector Sell-off: Global stocks experienced a significant sell-off on Tuesday, led by a 10% drop in South Korea's tech-heavy Kospi index, with major players SK Hynix and Samsung both losing over 12%, indicating growing concerns about the tech industry's outlook.
- European Market Declines: European shares also fell sharply, with the pan-European Stoxx 600 index shedding 1.2% in early trading, while the technology sector led the losses with a 3.2% decline, as STMicroelectronics and ASMI both dropped more than 7%, reflecting weakened investor confidence in tech stocks.
- Futures Down Ahead of Trading: Futures tied to the Nasdaq 100 index fell 2.7% ahead of Tuesday's regular trading session, highlighting market unease regarding major tech companies, particularly Nvidia, Apple, Alphabet, and Microsoft.
- Poor Semiconductor ETF Performance: In pre-market trading on Wall Street, the iShares Semiconductor ETF was down 5.9%, with individual chip stocks suffering significant losses, including Intel down 7.8%, Micron down 8.4%, and AMD down 6%, indicating a heightened pessimism towards the semiconductor sector.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 197.580
Low
200.00
Averages
264.97
High
352.00
Current: 197.580
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia's Stock Performance and Future Outlook
- Staggering Returns: Nvidia has achieved a compound annual growth rate of 59.49% since 2021, meaning a $1,000 investment five years ago would now be worth $10,319.71, significantly outperforming the S&P 500's 13.06% growth, highlighting its exceptional investment potential.
- Market Leadership: Nvidia remains the undisputed leader in the GPU market, and with hyperscalers investing heavily in AI infrastructure, this trend is expected to continue, further solidifying its market dominance and driving future growth.
- Relative Valuation: Despite Nvidia's stock appearing cheap relative to its growth potential, trading at a forward P/E of 22.2x compared to the tech sector's average of 22.4x, this suggests the market may be undervaluing its future growth prospects.
- Investor Confidence: Although the stock has seen recent declines, analysts believe Nvidia can still deliver above-average returns, prompting investors to seize the opportunity to buy its shares for solid returns in the coming years.
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- Active vs. Passive Management: In 2026, approximately 80% of new ETFs are actively managed, and while these funds incur higher costs with an average expense ratio of 0.69%, their goal is to outperform benchmarks, addressing the investment needs arising from market volatility.
- Performance Discrepancies: According to the 2025 SPIVA U.S. Scorecard, 79% of actively managed large-cap equity funds underperformed the S&P 500 last year, highlighting the advantages of passively managed ETFs over the long term, with only 24% of active ETFs beating their benchmarks over a decade.
- Investment Decision Factors: When selecting an ETF, investors should consider the management team's track record, expense ratios, and performance in various market conditions to ensure that the chosen fund effectively balances their portfolio and meets expected returns.
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- Revenue and Loss Overview: SpaceX generated nearly $18.7 billion in total revenue in 2025, with its connectivity business (Starlink) contributing $11.4 billion in revenue and $4.4 billion in operating profit, yet the overall net loss exceeded $4.9 billion, highlighting the financial pressures faced during expansion.
- Capital Expenditure Challenges: Despite Starlink and the AI unit signing a $1.25 billion monthly contract to supply processing power, SpaceX's capital expenditures are expected to remain high, potentially leading to investor unease in the coming years, which could impact stock price stability.
- Diversified Business Structure: SpaceX's operations extend beyond space exploration to include data centers, satellite broadband networks, and a social media platform (X), which, while reflecting market demand, also render the company somewhat unwieldy in management.
- Investor Confidence Test: Although SpaceX is at the forefront of technological innovation, its substantial losses and high capital expenditures prompt analysts to advise caution for potential investors, especially as more attractive investment options emerge.
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- Significant Investor Losses: An investor who placed $10,000 in FNGU on June 1, 2026, saw a reduction of approximately 28.88% by the end of the month, while the Nasdaq-100 index only slipped 0.85%, highlighting FNGU's high-risk profile in volatile markets.
- Fee Structure Comparison: FNGU's annual fee of 0.95% contrasts sharply with QQQ and XLK's 0.08%, leading to thousands of dollars in additional costs over the long term, which adversely affects investment returns.
- ETN Credit Risk: As an ETN, FNGU holders are unsecured creditors of Bank of Montreal, meaning that in the event of a bank default, investors could face total loss, adding uncertainty to their investment.
- Market Performance Discrepancy: Despite the VIX fluctuating between 15.40 and 22.22 in June 2026, FNGU suffered significant losses due to its daily reset leverage, demonstrating its vulnerability in market volatility and prompting investors to carefully assess its suitability as a trading tool.
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- Intel AI Chip Demand Growth: Intel's Data Center and AI segment saw a 22% year-over-year growth, contributing over one-third of total revenue, indicating strong demand in the AI market that will drive future revenue growth, especially with the $8.9 billion investment from the Trump administration.
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- Impact of Strategic Customer Agreements: Micron's multi-year strategic customer agreements provide greater revenue visibility and mitigate cyclical business risks, positioning the company to capture further market share and revenue growth as the AI market continues to expand over the coming years.
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- Stock Surge: Bloom Energy's stock has skyrocketed by 1,100% over the past year and over 250% year-to-date, reflecting strong market demand and investor confidence, although current prices may not create new millionaires.
- Strategic Partnership Expansion: Bloom's AI infrastructure relationship with Brookfield Asset Management has expanded from $5 billion to $25 billion, which, while not a direct revenue commitment, creates more sales potential for Bloom's energy servers and strengthens its market position.
- Importance of Financing Framework: The Brookfield agreement is a financing framework rather than a purchase order, meaning it provides funding support for Bloom but does not guarantee direct revenue flow, necessitating efficient execution from Bloom to achieve long-term gains.
- Cautious Market Outlook: Despite strong demand for Bloom's energy servers, the transition from demand to actual revenue is complex, and given project timelines and financing structures, investors should remain cautious and avoid excessive optimism.
See More
Nvidia's Stock Performance and Future Outlook
- Staggering Returns: Nvidia has achieved a compound annual growth rate of 59.49% since 2021, meaning a $1,000 investment five years ago would now be worth $10,319.71, significantly outperforming the S&P 500's 13.06% growth, highlighting its exceptional investment potential.
- Market Leadership: Nvidia remains the undisputed leader in the GPU market, and with hyperscalers investing heavily in AI infrastructure, this trend is expected to continue, further solidifying its market dominance and driving future growth.
- Relative Valuation: Despite Nvidia's stock appearing cheap relative to its growth potential, trading at a forward P/E of 22.2x compared to the tech sector's average of 22.4x, this suggests the market may be undervaluing its future growth prospects.
- Investor Confidence: Although the stock has seen recent declines, analysts believe Nvidia can still deliver above-average returns, prompting investors to seize the opportunity to buy its shares for solid returns in the coming years.
See More
The Rise of Active ETFs: Challenges and Opportunities
- ETF Evolution: Since the launch of the first SPDR S&P 500 ETF in 1993, ETFs have become crucial in diversified portfolios, attracting investors due to their low expense ratios and diverse investment options, thereby enhancing overall market liquidity.
- Active vs. Passive Management: In 2026, approximately 80% of new ETFs are actively managed, and while these funds incur higher costs with an average expense ratio of 0.69%, their goal is to outperform benchmarks, addressing the investment needs arising from market volatility.
- Performance Discrepancies: According to the 2025 SPIVA U.S. Scorecard, 79% of actively managed large-cap equity funds underperformed the S&P 500 last year, highlighting the advantages of passively managed ETFs over the long term, with only 24% of active ETFs beating their benchmarks over a decade.
- Investment Decision Factors: When selecting an ETF, investors should consider the management team's track record, expense ratios, and performance in various market conditions to ensure that the chosen fund effectively balances their portfolio and meets expected returns.
See More
Analysis of SpaceX's Performance Post-IPO
- Revenue and Loss Overview: SpaceX generated nearly $18.7 billion in total revenue in 2025, with its connectivity business (Starlink) contributing $11.4 billion in revenue and $4.4 billion in operating profit, yet the overall net loss exceeded $4.9 billion, highlighting the financial pressures faced during expansion.
- Capital Expenditure Challenges: Despite Starlink and the AI unit signing a $1.25 billion monthly contract to supply processing power, SpaceX's capital expenditures are expected to remain high, potentially leading to investor unease in the coming years, which could impact stock price stability.
- Diversified Business Structure: SpaceX's operations extend beyond space exploration to include data centers, satellite broadband networks, and a social media platform (X), which, while reflecting market demand, also render the company somewhat unwieldy in management.
- Investor Confidence Test: Although SpaceX is at the forefront of technological innovation, its substantial losses and high capital expenditures prompt analysts to advise caution for potential investors, especially as more attractive investment options emerge.
See More
FNGU's Volatility Decay Demonstrated
- Significant Investor Losses: An investor who placed $10,000 in FNGU on June 1, 2026, saw a reduction of approximately 28.88% by the end of the month, while the Nasdaq-100 index only slipped 0.85%, highlighting FNGU's high-risk profile in volatile markets.
- Fee Structure Comparison: FNGU's annual fee of 0.95% contrasts sharply with QQQ and XLK's 0.08%, leading to thousands of dollars in additional costs over the long term, which adversely affects investment returns.
- ETN Credit Risk: As an ETN, FNGU holders are unsecured creditors of Bank of Montreal, meaning that in the event of a bank default, investors could face total loss, adding uncertainty to their investment.
- Market Performance Discrepancy: Despite the VIX fluctuating between 15.40 and 22.22 in June 2026, FNGU suffered significant losses due to its daily reset leverage, demonstrating its vulnerability in market volatility and prompting investors to carefully assess its suitability as a trading tool.
See More
Micron vs. Intel: Competing in the AI Surge
- Micron Revenue Surge: Micron's revenue quadrupled year-over-year in Q3 FY2026, with net income more than doubling sequentially and increasing over tenfold year-over-year, indicating strong performance in the AI chip market, and projected Q4 revenue of $50 billion suggests over 20% sequential growth, further solidifying its market position.
- Intel AI Chip Demand Growth: Intel's Data Center and AI segment saw a 22% year-over-year growth, contributing over one-third of total revenue, indicating strong demand in the AI market that will drive future revenue growth, especially with the $8.9 billion investment from the Trump administration.
- Market Share and Valuation Comparison: Micron's forward P/E ratio stands at 7.4, despite its growth rate exceeding Nvidia's, while Intel's P/E ratio is 147, reflecting differing market expectations for future growth potential and highlighting Micron's current market advantage.
- Impact of Strategic Customer Agreements: Micron's multi-year strategic customer agreements provide greater revenue visibility and mitigate cyclical business risks, positioning the company to capture further market share and revenue growth as the AI market continues to expand over the coming years.
See More
Bloom Energy's Stock Surge and Future Outlook
- Stock Surge: Bloom Energy's stock has skyrocketed by 1,100% over the past year and over 250% year-to-date, reflecting strong market demand and investor confidence, although current prices may not create new millionaires.
- Strategic Partnership Expansion: Bloom's AI infrastructure relationship with Brookfield Asset Management has expanded from $5 billion to $25 billion, which, while not a direct revenue commitment, creates more sales potential for Bloom's energy servers and strengthens its market position.
- Importance of Financing Framework: The Brookfield agreement is a financing framework rather than a purchase order, meaning it provides funding support for Bloom but does not guarantee direct revenue flow, necessitating efficient execution from Bloom to achieve long-term gains.
- Cautious Market Outlook: Despite strong demand for Bloom's energy servers, the transition from demand to actual revenue is complex, and given project timelines and financing structures, investors should remain cautious and avoid excessive optimism.
See More
