Shares of chipmaking giant and ‘Magnificent Seven’ darling Nvidia remained under pressure for the third straight session on Monday, 30 March, falling another 1% to $166.21 apiece. The stock was last seen at these levels in early September 2025.
The three-day sell-off has dragged the tech major down 6% so far in March, pushing it enter into bear market territory, as it is now down 21% from its November 2025 high of $211.34 apiece. The ongoing decline has come despite strong fundamentals, with improving margins and expectations of robust profit growth.
However, investors are increasingly concerned that the company’s booming revenue from AI accelerator sales may not be sustainable. At the same time, anxiety around AI-driven disruption has weighed on software companies and other sectors.
The sell-off is not limited to Nvidia. Broader technology stocks have been under pressure since peaking in October, amid growing concerns over whether massive investments in artificial intelligence will deliver returns.
More recently, the escalating conflict involving Iran has further dampened risk appetite.
The tech-heavy Nasdaq 100 fell nearly 2% in the previous session to 23,135, taking its decline to about 11% from its October peak. This marks the first time since April 2025 — when tariffs under US President Donald Trump triggered a sharp sell-off — that the index has entered , defined as a fall of at least 10% from recent highs.
Big Tech drags deepen Nasdaq’s fall
Microsoft Corp. and Meta Platforms Inc., two of the heaviest spenders on AI, have been among the biggest drags on the Nasdaq 100 since its 29 October peak. Since then, Microsoft has declined 34%, while Meta Platforms has fallen 29%, with the Facebook parent also facing pressure from recent legal challenges.
Other members of the ” have also seen sharp declines. Amazon is down 23% from its recent high, Apple has slipped 15%, and Tesla has dropped 28% since peaking in December 2025.
Amazon had earlier said it plans to spend $200 billion this year on data centres, chips, and related infrastructure, raising investor concerns that its aggressive AI investments may not generate adequate near-term returns and could weigh on operating performance.
Overall, US tech giants are expected to invest more than $650 billion in data centres and — an unprecedented level of spending.
Despite leading the recent sell-off, tech giants continue to enjoy a positive outlook on Wall Street, with earnings growth expected to outpace the broader S&P 500 this year, while valuations have become more attractive compared to a few months ago.
Meanwhile, Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla are projected to deliver profit growth of 19% in 2026, according to Bloomberg Intelligence. In comparison, the remaining S&P 500 companies are expected to post earnings growth of around 16%.
The Nasdaq 100 is currently trading at 21 times estimated earnings, down from a peak of 28 times in October and now at a slight discount to its decade-long average.
(With inputs from Bloomberg)
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