Tech Stock Roundup: Nasdaq Plunges From Cooling AI Market; Tech Giants Lose $1.57T in 2025

• The Nasdaq dropped significantly last week, erasing all post-election gains.
• Tesla, Nvidia, and Broadcom are seeing major losses, with drops between 18% and 35%.
• On the other hand, Alibaba surged thanks to a new AI launch.

The tech sector saw one of its worst trading weeks as concerns over tariffs and a cooling AI market hit investor sentiment, alongside fears of high costs from chip producer TSMC.

Only Alibaba shone in a market that saw giants like Tesla and Nvidia report double-digit losses.

Tech Sell-off Erases Post-Election Gains

The Nasdaq plunged by 2.6% on Thursday and 2.8% across the week, erasing all post-election gains and heading for its worst week since September. Tariffs, weak job numbers, and concerns over a cooling AI market rattled investors.

Tech executives, including Apple‘s Tim Cook, Meta’s Mark Zuckerberg, Amazon founder Jeff Bezos, and Alphabet’s Sundar Pichai, initially backed Donald Trump’s presidency.

Their companies drove a two-year Nasdaq rally—43% in 2023 and 29% last year—led by Nvidia and Meta.

However, market sentiment has shifted. Tesla is down 35% this year after a 6% drop on Thursday, trading 45% below its December peak. Nvidia has slid 18% in 2024, including 11% this week, while Broadcom, after doubling last year, has fallen 22%.

Marvell Technology led Thursday’s decline, plunging by 20% and now down 35% year-to-date.

“An astonishing $1.57 trillion has been wiped off the value of the Magnificent Seven year-to-date. Six of the seven stocks have fallen in value, with Meta the only one to produce a positive return.” Dan Coatsworth, investment analyst at AJ Bell, said.

“Meta has become the Lone Ranger, representing a significant turning point for the tech collective,” Coatsworth added.

TSMC’s U.S. Venture Disappoints

TSMC shares slipped after the company announced a $100 billion investment in five new U.S. chip plants, adding to concerns over its market dominance.

President Trump announced the investment on March 4 alongside TSMC CEO C.C. Wei, who emphasized AI chip production. TSMC, the world’s largest contract chipmaker, supplies Apple, Qualcomm, AMD, Nvidia, and Intel.

The company had previously pledged $65 billion for U.S. plants, bringing its total investment to $165 billion.

Despite the news, TSMC shares fell by 1.9% after its U.S. depositary receipts dropped over 7%. The decline followed Trump’s confirmation that his 25% tariffs on imports from Canada and Mexico would proceed, sparking market volatility.

The stock increased by 2.4% during the entire week but, at the time of writing, fell by 2.3% during pre-market activity.

Alibaba Surges on New AI Launch

Alibaba’s latest Qwen AI model launch sent its stock up 8% on March 6, reinforcing China’s growing dominance in open-source AI.

The 32B parameter QwQ-32B outperforms DeepSeek R1’s equivalent model and rivals the full-sized R1-671B, thanks to reinforcement learning techniques. Notably, R1 itself was based on an older Qwen model, highlighting the value of open-source collaboration.

Beyond the AI launch, broader economic optimism lifted Chinese stocks. Beijing’s annual policy meetings signaled plans to boost consumption and fiscal stimulus.

Alibaba has surged 40% in the past month, Tencent by 30% , and even Baidu, lagging in AI, is up 10%. Meanwhile, U.S. tech giants like Apple, Nvidia, and Microsoft are all down year-to-date.

China’s AI boom continues to attract foreign investment, with major firms embracing DeepSeek R1. Alibaba has pledged 380 billion yuan – equal to $52.4 billion – to cloud and AI infrastructure, its largest-ever investment.