Tech stocks struggled, dragging the Nasdaq lower as investors turned defensive ahead of Nvidia’s (NVDA) earnings. Palantir (PLTR) and Super Micro (SMCI) led the declines, while caution spread across the sector, raising the stakes for the AI giant’s upcoming results. Apple (AAPL) provided a rare bright spot, climbing on a $500 billion AI investment, while Nasdaq Inc. (NDAQ) moved to expand its debt tender offer.
Tech Stocks Slide as Palantir and Super Micro Struggle
The Nasdaq came under pressure as technology stocks took a hit, with Palantir Technologies (PLTR) plunging 10.5% amid concerns that U.S. defence spending cuts could squeeze its government contracts. Super Micro Computer (SMCI) also tumbled, down 8%, as investors grew wary of potential delisting risks — an issue that tends to unsettle sentiment quickly.
The broader market remained cautious ahead of a major test for the sector: Nvidia’s (NVDA) earnings. As the dominant force in AI chips, Nvidia’s results will offer a crucial read on AI-driven revenue trends and data centre demand. Given how much of the recent rally has hinged on AI expectations, any deviation from the script could send ripples across the sector.
Amid the uncertainty, Apple (AAPL) provided some stability, climbing 1.1% after unveiling a $500 billion investment plan to ramp up AI server production and job creation in the U.S. The announcement underscored Apple’s long-term AI ambitions, offering investors a rare point of confidence in an otherwise shaky session.
Source: Reuters
Nvidia Earnings: The AI Boom’s First Real Stress Test
All eyes are on Nvidia (NVDA) as it prepares to deliver what could be the most scrutinised earnings report of the AI era. When it reports on Wednesday, 26 February 2025, the market won’t just be looking at the numbers, it’ll be searching for clues on whether AI’s explosive growth is still on track or beginning to plateau.
Wall Street expects $38.05 billion in revenue, marking a 72% year-over-year increase. While that’s an impressive figure, it’s also Nvidia’s slowest growth in seven quarters, a potential warning sign that AI-driven demand may be losing momentum.
For a deeper look at yesterday’s Nasdaq price action and the market dynamics shaping today’s session, read our full breakdown: Nasdaq Sellers Dominate as Failed Rallies Reinforce Downside Risk
At the same time, competition is heating up. Chinese startup DeepSeek has emerged as a potential disruptor, launching low-cost AI models that challenge Western alternatives. Back in January, news of DeepSeek’s advancements triggered a massive $593 billion market cap decline for Nvidia, underscoring just how sensitive investors have become to the threat of emerging rivals.
Yet despite these concerns, Microsoft (MSFT) and Meta (META) remain in full AI expansion mode, pouring billions into infrastructure and potentially offsetting market fears. Investors will be watching closely for demand signals around Nvidia’s next-generation Blackwell chips, which could serve as a defining moment for the stock.
Source: MarketWatch
Nasdaq on Edge as Nvidia’s Earnings Take Centre Stage
The Nasdaq’s recent slump reflects a broader unease hanging over the tech sector. With Nvidia’s earnings report just around the corner, traders and analysts are zeroing in on the company’s outlook and what it signals for the next phase of AI-driven growth.
If Nvidia smashes expectations, it could inject fresh optimism into the market, easing fears that the AI rally is losing steam. A strong report might even be enough to reverse the Nasdaq’s recent decline. But if the numbers disappoint, or worse, if guidance hints at slowing adoption, the sector could face another wave of selling, forcing investors to reconsider whether AI stocks have been running on fundamentals or just fumes.
