Thu Feb 27 22:30:00 UTC 2025: ## Nvidia’s Dip Triggers Broad Market Sell-Off

**New York, NY –** A significant drop in Nvidia’s stock price following its earnings report triggered a broader sell-off in the tech sector and the overall market Thursday. Nvidia, a key player in the artificial intelligence (AI) market, closed down over 8%, extending its year-to-date losses to more than 10%. This decline heavily impacted related companies and indices.

The semiconductor sector suffered particularly, with Broadcom and Micron each falling more than 6%, and the PHLX Semiconductor Index plummeting 6%. The tech-heavy Nasdaq Composite finished the day down 2.8%, while the S&P 500 fell 1.6%, with seven of its eleven sectors experiencing losses.

Despite Nvidia exceeding earnings expectations and nearly doubling its data center revenue (a key indicator of AI demand), investors reacted negatively. Concerns over the sustainability of excessive AI spending and broader economic conditions appear to have dampened enthusiasm for AI stocks. This sentiment led to a widespread sell-off, impacting even companies with positive earnings reports.

Super Micro Computer, which recently avoided delisting from the Nasdaq, fell 16%, while Vistra, a nuclear power provider, dropped 12% despite surpassing earnings expectations. Even Palantir, another AI-focused company, saw a 5% decline. The market’s reaction suggests that investor appetite for high-growth AI stocks has cooled considerably.

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