Mon Mar 10 11:10:00 UTC 2025: ## Tech Stocks Take a Tumble After 2024 Boom

**Chicago, IL – March 4, 2025** – The US stock market’s recent downturn has hit AI-focused growth stocks particularly hard, reversing some of last year’s spectacular gains. Leading the decline are several of 2024’s top performers, including Palantir Technologies (PLTR), Nvidia (NVDA), and Broadcom (AVGO), which have seen significant drops in the past two weeks. Palantir plummeted 32.3%, Nvidia fell 16.8%, and Broadcom lost 18%. The broader Morningstar US Large-Cap Index is down 6% during this period.

Of the 15 best-performing large-cap stocks in 2024, all have experienced losses in the past two weeks, with over two-thirds suffering double-digit declines. Four of the biggest losers – Palantir, Constellation Energy (CEG), Tesla (TSLA), and Arista Networks (ANET) – are all major players in the AI sector.

Despite the recent setbacks, most of these stocks remain strong long-term investments. Fourteen out of the fifteen outpaced the market’s 11.2% annualized return over the past three years. The exception is Tesla, which saw a slight loss. Palantir led with a 98% annual surge, followed by Nvidia at 72% and Constellation at 66%.

The Morningstar Global Next Generation Artificial Intelligence Index, tracking leading generative AI companies, has also fallen 11.5% in the last two weeks, adding to a year-to-date loss of 1.9%. This contrasts sharply with its 37% surge in 2024.

Analysts attribute the decline to several factors, including overvaluation at the end of 2024. Several companies, including Broadcom, Constellation, and others, ended 2024 with Morningstar ratings indicating moderate or significant overvaluation. However, as of March 4th, some of these companies, including Palantir, Broadcom, Arista, Marvell, and Tesla, have seen their valuations return to “fairly valued” levels according to Morningstar’s equity analysts.

In contrast to the tech sector’s slump, healthcare stocks are performing well, rising nearly 7% year-to-date and showing resilience during the broader market decline. Companies like CVS Health, Gilead Sciences, and Abbott Laboratories are leading the gains.

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