Why Nvidia, AMD, Palantir and Intel crashed today: what’s happening with AI stocks as Nasdaq falls over 300 points

Nvidia, AMD, Palantir and Intel crashed today: The Nasdaq Composite dropped more than 300 points, or over 1.2%, in the latest session, marking one of its sharpest single-day declines in weeks. The selloff was led by heavyweight artificial intelligence and semiconductor stocks, wiping out billions in market value in just hours. Nvidia fell more than 3%, AMD plunged over 15%, Palantir slid nearly 12%, and Intel lost close to 4%, triggering fresh concerns about whether the AI trade is entering a deeper correction phase. Trading volumes surged across chipmakers and software names, a clear signal that institutional investors were actively reducing exposure rather than making routine profit-taking moves.

At the index level, the divergence was striking. The Dow Jones Industrial Average rose 265 points, while the S&P 500 slipped modestly and the tech-heavy Nasdaq absorbed the full brunt of the selloff.

Adding to the tech sector's woes, fresh economic data from ADP released Wednesday showed that U.S. private payrolls increased by only 22,000 in January. This figure significantly missed the 45,000 jobs gain projected by Dow Jones economists and represents a sharp deceleration from the prior year’s growth. The manufacturing sector remains a primary drag on the labor market, having lost 8,000 positions in January alone, while professional and business services saw a staggering reduction of 57,000 jobs.


While the ISM Services Index provided a slight glimmer of hope by beating forecasts with a reading of 53.8, the underlying components told a more complex story. New export orders and inventories slumped by over 9 points each, while the Prices Index jumped to 66.6, indicating that inflationary pressures remain sticky. This combination of slowing job growth and rising service costs has created a "risk-off" environment, prompting a rotation out of volatile tech assets and into safer, cyclical sectors like healthcare and industrials.

Why Nvidia, AMD, Palantir and Intel stocks crashed today

The immediate catalyst came from Advanced Micro Devices, which issued a first-quarter forecast that fell short of elevated Wall Street expectations. The stock dropped more than 15% in a single session, erasing weeks of gains. Investors reacted less to AMD’s current revenue and more to what the guidance implied: that hyperscaler and enterprise AI spending may be normalizing after an explosive 2024 run.

That weakness quickly spread across the sector. NVIDIA Corporation, the market’s most influential AI stock, slid over 3% as traders reassessed near-term demand assumptions baked into its valuation. Nvidia remains the backbone of global AI infrastructure, but its stock price already reflects aggressive growth projections. In an environment where guidance matters more than hype, even a hint of slower growth is enough to trigger selling.

Palantir Technologies also came under heavy pressure, falling more than 11%. Despite strong long-term government and enterprise contracts, Palantir has become a proxy for AI optimism in software. As sentiment shifted, high-multiple software names were among the first to be sold. Smaller-cap AI-linked stocks felt the pain as well, with Ondas Holdings dropping over 13%, showing how quickly risk appetite vanished across the broader AI ecosystem.

Intel Corporation declined nearly 4% as investors questioned whether legacy chipmakers can keep pace with faster-moving rivals in advanced AI workloads. While Intel is investing heavily in foundry services and AI accelerators, the market remains skeptical about timelines and margins, especially in a slowing demand environment.

What today’s Nasdaq selloff says about AI stock valuations

The Nasdaq’s more than 300-point drop to around 22,970 was not driven by a single earnings miss. It reflected a broader repricing of risk. Over the past year, AI stocks delivered outsized gains, pushing valuations to levels that assumed near-perfect execution and uninterrupted demand growth. As soon as earnings guidance showed even mild cracks, the market reacted swiftly.

Semiconductor peers felt the ripple effect. Broadcom fell roughly 3%, while Micron Technology dropped about 8%, reinforcing the idea that the selloff was sector-wide rather than company-specific. The technology sector ended the day as the worst performer in the S&P 500, down more than 2%.

This move also exposed a structural shift. Investors are no longer willing to pay unlimited premiums for future AI growth. Instead, they are demanding clearer evidence of sustained margins, disciplined capital spending, and stable end-market demand. AI remains a transformative theme, but the market is signaling that execution risk now matters as much as innovation.

Investors rotate out of AI and into value as Dow outperforms

While tech stocks struggled, the Dow Jones Industrial Average rose more than 265 points to about 49,506, highlighting a clear rotation. Amgen surged over 6% after reporting better-than-expected earnings and revenue, giving the Dow a significant boost. Caterpillar gained around 1%, signaling renewed interest in industrial and infrastructure-linked names.

This rotation suggests investors are seeking earnings visibility and balance-sheet strength rather than long-duration growth stories. Consumer and cyclical stocks like Walmart also attracted inflows earlier in the week, reinforcing the defensive tilt. Meanwhile, the S&P 500 slipped modestly, while the NASDAQ Composite absorbed the majority of selling pressure.

Macro data added another layer of caution. ADP reported private payroll growth of just 22,000 jobs for January, well below expectations of 45,000. Although the official nonfarm payrolls report was delayed due to the recent government shutdown, the softer ADP data raised concerns about slowing economic momentum. Slower growth tends to hurt high-multiple tech stocks more than defensive names.

Commodities update today: gold steady, silver jumps, copper slips

Gold prices held firm near $4,942.70 an ounce, rising $7.70, or 0.16%, with strong trading volume of 169,000 contracts. The metal continues to trade close to record levels, supported by safe-haven demand and portfolio hedging. Gold’s 52-week range of $2,837 to $5,626 shows how sharply prices have climbed over the past year.

Silver outperformed across metals. Prices surged 3.49% to $86.21 an ounce, adding $2.91 in a single session. Volume remained active at 76,000 contracts, reflecting strong speculative interest. Silver remains highly volatile, trading within a wide 52-week range of $27.52 to $121.78, driven by both industrial demand and investment flows.

Platinum edged higher to $2,220.10, up 0.51%, while copper moved lower. Copper prices slipped to $5.92, down 2.68%, signaling pressure from slowing industrial demand expectations. Copper’s pullback contrasts with strength in precious metals, highlighting a split between growth-sensitive and defensive commodities.