US stocks lose their footing at the open as tariff and AI worries take hold again. Marvell Technology sees a slowdown in data center business.
Key Takeaways U.S. equities dipped at midday as confusion over the new tariffs by President Donald Trump led to market uncertainty.Artificial intelligence chip shares tumbled following Marvell Technology's results.
Semiconductor stock Marvell Technology Inc (NASDAQ:MRVL) is up 2.7% to trade at $88.13 at last glance, brushing off today's headwinds, though it was earlier on track for its seventh loss in nine days.
Marvell stock is getting crushed after posting its Q4 results yesterday. Sales, earnings, and guidance actually beat the average Wall Street targets. But investors apparently wanted bigger performance beats in order to support the stock's valuation amid wider risk factors.
Nvidia (NVDA) stock fell 5.7% on Thursday, bringing its decline this year to more than 17% amid concerns about declines in spending on AI, amid a general selloff in that took the tech-centered Nasdaq 100 down 2.
Marvell Technology's shares closed down 19.8%, marking their worst day in more than two decades and weighing on rival chipmakers' stocks on Thursday, after an in-line revenue forecast gave investors another reason to be jittery about spending on AI infrastructure as a years-long rally shows signs of cooling.
Nvidia ( NVDA) stock briefly extended its decline on Friday as the AI chip giant's market cap losses from its record high in January reached $1 trillion. A broader market sell-off coupled with fears of an overvaluation in the AI trade has sent the stock tumbling more than 23% over the past two months.