At 12:40 p.m. ET, the Nasdaq Composite is down a little more than 1%, which is off its lows it tested near the open and at noon.
NVIDIA remains the biggest story today, but not all semiconductor stocks are down. Broadcom (Nasdaq: AVGO) is up .83%, for example.
The iShares Semiconductor ETF (Nasdaq: SOXX) is down .84% today, which is lower than the Nasdaq itself.
Other large cap technology stocks are down today as well. Apple (Nasdaq: AAPL) is down 1.86%, Meta Platforms (Nasdaq: META) is down 1.8%, and Alphabet (Nasdaq: GOOG) is down 1.14%.
Let’s examine the ‘Export Control Framework for Artificial Intelligence Diffusion’ rule that’s sinking AI chip stocks across the market today.
The rules don’t go into effect for 120 days and it’s unclear how it will impact many companies across the semiconductor industry. Many details have yet to be revealed. For example, the allocations across countries the BIS would set are still not revealed.
NVIDIA itself may be falling for multiple reasons today. Beyond the new export restrictions from the Biden Administration, there are also reports of continuing issues with Blackwell production that could lead to a shortfall in revenue in the first half of 2025. Finally, rising interest rates continue to be a headwind to NVIDIA and other technology stocks.
After becoming one of the stock market’s most successful investments during Covid, Moderna (Nasdaq: MRNA) has had a very difficult run. The company was recently removed from the Nasdaq-100 and has seen its share price fall from a peak of around $450 per share to less than $35 in premarket trading.
The latest pain for Moderna shareholders is another reduction to revenue guidance. The company now expects yearly revenue to land between $1.5 and $2.5 billion, with most that coming in the back half of the year.
Previously, Moderna had forecast sales of $2.5 to $3.5 billion. As you can see, this is a massive reduction in guidance. Moderna has a long runway to getting back to profitability, so this guidance reduction raises more questions how long that timeframe could take.
Live coverage has ended. The full story is below.
NVIt’s the start of a new trading week, but little has changed since Friday. In premarket trading, the dominant factor weighing on markets is the rise of 10-year Treasury prices which hit a 14-month high. As of 8:40 a.m. ET, the yield on 10-years stands at 4.763%.
That’s a jump from the 4.57% price to start the year. As investors shift out of stocks, many ‘momentum’ stocks and others that saw strong price appreciation across the past year continue to take the brunt of the sell-off. Here’s how major indexes are performing premarket:
It looks to be another day where technology stocks are the market’s worst performers. Let’s take a deeper look at some of today’s biggest stories.
NVIDIA (Nasdaq: NVDA | NVDA Price Prediction) has been in retreat after hitting $153 per share last Tuesday morning. In premarket trading, the company is now trading for $131.55. That’s a 14% drop in less than a week.
Is there a reason for this drop beyond the usual headlines? One story to watch is export controls announced by the Biden Administration on their way out the door. The Biden Administration formally announced 200 pages of new regulation around AI chip exports this morning.
The regulation creates three tiers of countries that can receive artificial intelligence chips, akin to what defense contractors have to navigate when exporting weapons systems.
The first tier is allied nations with no export controls. The second tier is countries with some limits. A final tier would include China and have extremely strong export restrictions.
It’s likely semiconductors – and AI chip stocks – could have a difficult week as the market digests how severe these new regulations are. Of course, with the Trump Administration coming into power next week, these new regulations could quickly become a bargaining chip that’s eliminated.
Contact [email protected] for any questions or corrections.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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