Wall Street Tech Stocks Lose Over $500 Billion in Value
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy NVDA?
Source: Benzinga
- Market Value Loss: On Thursday, Wall Street's tech sector saw over $500 billion wiped off market value across 10 major companies, indicating a sharp decline in investor confidence amid simultaneous pressures on both software and hardware sectors.
- Cisco Earnings Impact: Cisco's stock plummeted 11% despite reporting earnings of $1.04 per share, exceeding expectations, as the company’s gross margin guidance of 65.5%-66.5% fell short of the 68% consensus, highlighting the impact of rising hardware costs.
- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
- Software Sector Decline: The iShares Expanded Tech-Software Sector ETF dropped over 3% on Thursday, with the sector down over 20% year-to-date, illustrating the ongoing impact of fears surrounding AI disruption on software stock performance.
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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: 184.970
Low
200.00
Averages
264.97
High
352.00
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
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- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
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- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
See More
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SoftBank Group Corp's Decision: SoftBank Group Corp has decided to dissolve its share stake in Nvidia Corp, indicating a strategic shift in its investment portfolio.
SEC Filing: The dissolution of the stake was formally communicated through a filing with the Securities and Exchange Commission (SEC), highlighting regulatory compliance in the process.
See More
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- High-Profile Absence: Bill Gates announced his withdrawal from the 2026 India AI Impact Summit just hours before his scheduled keynote, marking the second high-profile cancellation at the event, which could negatively impact its reputation and focus.
- Focus on Core Agenda: The Gates Foundation stated that the decision was made after 'careful consideration' to ensure that the summit's core priorities remain in the spotlight, although no further details were provided, potentially affecting attendee expectations.
- Controversy Impact: Gates' withdrawal comes amid renewed scrutiny over his past association with convicted sex offender Jeffrey Epstein, which may lead to decreased public attention on the foundation's philanthropic efforts, thereby impacting future fundraising and projects.
- Other Absences: Concurrently, Nvidia CEO Jensen Huang also skipped the summit due to health issues, although the company’s executive vice president Jay Puri will lead the delegation, indicating that the absence of top executives could further amplify the summit's challenges.
See More
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- Partnership Announcement: OpenAI has partnered with Tata Group to establish a large-scale data center in India, starting with a 100-megawatt capacity and potentially scaling up to 1 gigawatt, significantly enhancing AI infrastructure capabilities in the region.
- Technology Integration: The collaboration aims to integrate OpenAI's technologies across Tata Group companies and TCS's global client base, thereby promoting widespread adoption of AI technologies beyond mere infrastructure.
- Market Competition: This initiative is seen as a strategic move by OpenAI to capture market share from Nvidia in the rapidly growing AI infrastructure sector, highlighting its ambitions in the Indian market.
- Executive Involvement: The partnership was announced by Tata Sons chairman Natarajan Chandrasekaran at the AI Impact Summit, where OpenAI CEO Sam Altman was also present, underscoring the significance of the project for both parties.
See More
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Delivery of AI-Powered Solutions: The article discusses the launch of a new delivery service that utilizes AI technology to enhance efficiency and customer experience.
Collaboration with NVIDIA: It highlights a partnership with NVIDIA to leverage their advanced computing capabilities for improved service delivery.
Intelligent Location Services: The service includes intelligent location features that optimize delivery routes and reduce wait times for customers.
Impact on the Industry: The initiative is expected to set a new standard in the delivery industry, showcasing the potential of AI in logistics and supply chain management.
See More
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- Risks of Leveraged ETFs: Leveraged ETFs like the ProShares Ultra NVDA ETF offer double exposure to Nvidia stocks, but they carry risks similar to margin trading; if Nvidia's stock drops by 20%, the ETF would fall by 40%, exposing investors to greater loss risks.
- High Expense Ratios: The ProShares Nvidia ETF has a high expense ratio of 0.95%, while the Vanguard S&P 500 ETF only charges 0.03%, meaning investors pay nearly $1 annually for every $100 invested, significantly reducing returns.
- Decay Risk: Due to daily rebalancing, leveraged ETFs face decay risk; if the underlying asset drops by 10%, a 2x leveraged ETF would drop by 20%, requiring a higher recovery gain to break even, thus increasing long-term holding risks.
- Advantages of Long-term Investing: Instead of holding leveraged ETFs, investors should consider long-term investments in high-quality stocks, which not only reduce investment stress but also provide more stable returns amid market volatility.
See More
