Stock Market Plummets as Tech Stocks Take a Hit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Source: CNBC
- Market Turmoil: The stock market faced a massive sell-off on Friday, with the S&P 500 and Nasdaq dropping 2.6% and 4.2%, respectively, breaking a nine-week winning streak and indicating investor anxiety over the Federal Reserve's interest rate policies.
- Tech Stock Struggles: Broadcom's stock plummeted 12.6% post-earnings, failing to meet high market expectations, which undermined investor confidence and exacerbated the overall decline in tech stocks.
- IPO Surge: SpaceX plans to issue 555.6 million shares at $135 each, raising approximately $75 billion and achieving a market value of $1.8 trillion, highlighting strong demand for high-tech companies but raising concerns about market oversupply.
- Investor Sentiment Dips: Following Alphabet's announcement of an $85 billion stock sale to fund AI investments, the market reacted negatively, with Meta Platforms also dropping over 6% due to potential dilution fears, reflecting investor apprehension about equity dilution.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 218.660
Low
200.00
Averages
264.97
High
352.00
Current: 218.660
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.
Anthropic Plans Initial Public Offering Amid AI Boom
- IPO Filing: Anthropic confidentially filed for an IPO with the SEC on June 1, indicating its rapid growth in the AI sector and positioning itself as a potential trillion-dollar company, likely to attract significant investor interest.
- Funding Background: Following a $65 billion Series H funding round, Anthropic's valuation reached $965 billion, surpassing OpenAI's $852 billion, reflecting strong competitive positioning and investor confidence in the AI market.
- Profitability Outlook: Anthropic expects to achieve nearly $50 billion in annualized revenue by the end of June and to turn an operating profit in the current quarter, making its IPO valuation potentially more attractive with a 20x forward revenue multiple compared to OpenAI's 40x.
- Market Sentiment: There is considerable anticipation for Anthropic's IPO, with investors assigning a 53% chance that its market cap will exceed $1.8 trillion on the first day of trading, indicating optimistic expectations for its future performance.
See More
Investor Education and Market Reflections
- Importance of Investor Education: At Kopachuck Middle School in Gig Harbor, Washington, Mr. Ernst's personal finance class is equipping students with essential investment knowledge, fostering financial literacy that lays the groundwork for future wealth accumulation.
- Nvidia's Dividend Surge: Nvidia's decision to increase its quarterly dividend from $0.01 to $0.25 per share represents a 25-fold return for shareholders, enhancing investor confidence and reflecting the company's robust profitability and cash flow.
- Market Performance Review: David Gardner reflects on the past decade's investment performance in the podcast, emphasizing the importance of long-term holding; while some investments did not outperform the market, the overall strategy remains effective, encouraging investors to maintain patience.
- Social Media Engagement: The podcast highlights engaging Twitter discussions, showcasing listeners' positive feedback on investment philosophies, particularly regarding maintaining optimism and patience in volatile markets, further enhancing community interaction and participation.
See More
David Gardner Discusses Investment Wisdom and Market Dynamics
- Investment Strategy Insights: David Gardner emphasizes the importance of holding great companies in the latest podcast episode, suggesting that long-term investment strategies allow investors to benefit from market fluctuations, especially when companies consistently exceed expectations.
- Nvidia Dividend Increase: Nvidia's announcement to raise its quarterly dividend from $0.01 to $0.25 per share signifies a 25-fold return for shareholders, enhancing investor confidence and reflecting the company's robust profitability and cash flow.
- Market Performance Review: Gardner reviews top-performing stocks over the past decade, noting that an investment in Netflix in 2004 would yield $443,191, highlighting the immense potential of long-term holding.
- Education and Investing: Gardner encourages young investors to focus on financial literacy, stressing the importance of early investment education, which will lay a solid foundation for future wealth accumulation.
See More
AMD's Data Center Revenue Surges 57% Amid Market Volatility
- Data Center Revenue Surge: AMD's data center revenue grew 57% to $5.8 billion in the latest quarter, establishing this segment as the company's main revenue driver, contributing to an overall revenue increase of 38% year-over-year to $10.3 billion, showcasing strong execution in the AI sector.
- Future Revenue Guidance: AMD anticipates current-quarter revenue of approximately $11.2 billion, implying about 46% year-over-year growth, indicating the company's ongoing expansion potential in the data center market, particularly with the upcoming launch of next-gen Instinct MI450 accelerators.
- Market Volatility Impact: Despite AMD's strong fundamentals, the stock experienced a decline due to a broader semiconductor sell-off triggered by Broadcom's underwhelming earnings report, highlighting the market's sensitivity to high-valuation stocks.
- Valuation Risks: With a price-to-earnings ratio exceeding 100, AMD's impressive data center performance is overshadowed by potential pressures in its PC and gaming segments due to rising costs, necessitating careful risk assessment for investors considering the stock.
See More
Investor Education and Market Dynamics
- Importance of Investor Education: At Kopachuck Middle School in Gig Harbor, Washington, Mr. Ernst's personal finance class is equipping students with essential investment knowledge, fostering financial literacy that will empower them to make informed decisions in complex markets in the future.
- Nvidia's Dividend Surge: Nvidia increased its quarterly dividend from $0.01 to $0.25 per share, representing a 25-fold return for shareholders, a move that not only boosts investor confidence but also reflects the company's robust profitability and cash flow.
- Market Performance Review: Over the past decade, the Motley Fool's Stock Advisor team has achieved an average return of 941%, significantly outperforming the S&P 500's 211%, demonstrating the effectiveness of a long-term strategy focused on holding quality stocks.
- Social Media Engagement: David Gardner interacts with listeners on social media, sharing investment experiences and market insights, which enhances community cohesion among investors and encourages more individuals to engage in investing.
See More
Amazon Shares Drop 3%, AI Investment Outlook Raises Concerns
- Cloud Computing Growth: Amazon Web Services (AWS) experienced a 28% year-over-year growth in Q1 2026, reaching $37.6 billion, driven by strong demand for computing power from AI model training, further solidifying Amazon's leadership in the cloud services market.
- Advertising Revenue Surge: Amazon's advertising revenue rose 24% to $17.2 billion in Q1, making it the second-largest player in digital advertising after Alphabet and Meta, indicating the high-profit potential of its advertising business is gradually being realized.
- Retail Profitability Improvement: North American retail operating income jumped from $5.8 billion to $8.3 billion year-over-year, thanks to faster delivery and a leaner warehouse network, pushing the overall operating margin to a record 13.1%, showing improved profitability in Amazon's retail sector.
- Capital Expenditure Pressure: Despite strong performance across various segments, Amazon's capital expenditures reached $44.2 billion in Q1, with expectations of around $200 billion in 2026, putting pressure on the company's free cash flow, which fell to about $1.2 billion over the past 12 months, necessitating careful assessment of future investment returns.
See More
Anthropic Plans Initial Public Offering Amid AI Boom
- IPO Filing: Anthropic confidentially filed for an IPO with the SEC on June 1, indicating its rapid growth in the AI sector and positioning itself as a potential trillion-dollar company, likely to attract significant investor interest.
- Funding Background: Following a $65 billion Series H funding round, Anthropic's valuation reached $965 billion, surpassing OpenAI's $852 billion, reflecting strong competitive positioning and investor confidence in the AI market.
- Profitability Outlook: Anthropic expects to achieve nearly $50 billion in annualized revenue by the end of June and to turn an operating profit in the current quarter, making its IPO valuation potentially more attractive with a 20x forward revenue multiple compared to OpenAI's 40x.
- Market Sentiment: There is considerable anticipation for Anthropic's IPO, with investors assigning a 53% chance that its market cap will exceed $1.8 trillion on the first day of trading, indicating optimistic expectations for its future performance.
See More
Investor Education and Market Reflections
- Importance of Investor Education: At Kopachuck Middle School in Gig Harbor, Washington, Mr. Ernst's personal finance class is equipping students with essential investment knowledge, fostering financial literacy that lays the groundwork for future wealth accumulation.
- Nvidia's Dividend Surge: Nvidia's decision to increase its quarterly dividend from $0.01 to $0.25 per share represents a 25-fold return for shareholders, enhancing investor confidence and reflecting the company's robust profitability and cash flow.
- Market Performance Review: David Gardner reflects on the past decade's investment performance in the podcast, emphasizing the importance of long-term holding; while some investments did not outperform the market, the overall strategy remains effective, encouraging investors to maintain patience.
- Social Media Engagement: The podcast highlights engaging Twitter discussions, showcasing listeners' positive feedback on investment philosophies, particularly regarding maintaining optimism and patience in volatile markets, further enhancing community interaction and participation.
See More
David Gardner Discusses Investment Wisdom and Market Dynamics
- Investment Strategy Insights: David Gardner emphasizes the importance of holding great companies in the latest podcast episode, suggesting that long-term investment strategies allow investors to benefit from market fluctuations, especially when companies consistently exceed expectations.
- Nvidia Dividend Increase: Nvidia's announcement to raise its quarterly dividend from $0.01 to $0.25 per share signifies a 25-fold return for shareholders, enhancing investor confidence and reflecting the company's robust profitability and cash flow.
- Market Performance Review: Gardner reviews top-performing stocks over the past decade, noting that an investment in Netflix in 2004 would yield $443,191, highlighting the immense potential of long-term holding.
- Education and Investing: Gardner encourages young investors to focus on financial literacy, stressing the importance of early investment education, which will lay a solid foundation for future wealth accumulation.
See More
AMD's Data Center Revenue Surges 57% Amid Market Volatility
- Data Center Revenue Surge: AMD's data center revenue grew 57% to $5.8 billion in the latest quarter, establishing this segment as the company's main revenue driver, contributing to an overall revenue increase of 38% year-over-year to $10.3 billion, showcasing strong execution in the AI sector.
- Future Revenue Guidance: AMD anticipates current-quarter revenue of approximately $11.2 billion, implying about 46% year-over-year growth, indicating the company's ongoing expansion potential in the data center market, particularly with the upcoming launch of next-gen Instinct MI450 accelerators.
- Market Volatility Impact: Despite AMD's strong fundamentals, the stock experienced a decline due to a broader semiconductor sell-off triggered by Broadcom's underwhelming earnings report, highlighting the market's sensitivity to high-valuation stocks.
- Valuation Risks: With a price-to-earnings ratio exceeding 100, AMD's impressive data center performance is overshadowed by potential pressures in its PC and gaming segments due to rising costs, necessitating careful risk assessment for investors considering the stock.
See More
Investor Education and Market Dynamics
- Importance of Investor Education: At Kopachuck Middle School in Gig Harbor, Washington, Mr. Ernst's personal finance class is equipping students with essential investment knowledge, fostering financial literacy that will empower them to make informed decisions in complex markets in the future.
- Nvidia's Dividend Surge: Nvidia increased its quarterly dividend from $0.01 to $0.25 per share, representing a 25-fold return for shareholders, a move that not only boosts investor confidence but also reflects the company's robust profitability and cash flow.
- Market Performance Review: Over the past decade, the Motley Fool's Stock Advisor team has achieved an average return of 941%, significantly outperforming the S&P 500's 211%, demonstrating the effectiveness of a long-term strategy focused on holding quality stocks.
- Social Media Engagement: David Gardner interacts with listeners on social media, sharing investment experiences and market insights, which enhances community cohesion among investors and encourages more individuals to engage in investing.
See More
Amazon Shares Drop 3%, AI Investment Outlook Raises Concerns
- Cloud Computing Growth: Amazon Web Services (AWS) experienced a 28% year-over-year growth in Q1 2026, reaching $37.6 billion, driven by strong demand for computing power from AI model training, further solidifying Amazon's leadership in the cloud services market.
- Advertising Revenue Surge: Amazon's advertising revenue rose 24% to $17.2 billion in Q1, making it the second-largest player in digital advertising after Alphabet and Meta, indicating the high-profit potential of its advertising business is gradually being realized.
- Retail Profitability Improvement: North American retail operating income jumped from $5.8 billion to $8.3 billion year-over-year, thanks to faster delivery and a leaner warehouse network, pushing the overall operating margin to a record 13.1%, showing improved profitability in Amazon's retail sector.
- Capital Expenditure Pressure: Despite strong performance across various segments, Amazon's capital expenditures reached $44.2 billion in Q1, with expectations of around $200 billion in 2026, putting pressure on the company's free cash flow, which fell to about $1.2 billion over the past 12 months, necessitating careful assessment of future investment returns.
See More
