On Tuesday, major tech stocks by trading volume in the US market mostly declined, with market sentiment under pressure. NVIDIA topped the list with a trading volume of $34.607 billion, with its stock closing down 3.43%. At the company's annual GTC conference, they announced plans to launch a "personal AI supercomputer," allowing developers and scientists to develop AI models on desktops. Additionally, NVIDIA announced the Blackwell Ultra chip, slated for release in the second half of 2025, to be upgraded to the "Vera Rubin" version in the second half of 2026. Despite the widespread attention on AI development prospects, market sentiment remains cautious, putting pressure on NVIDIA's stock price.
Tesla ranked second, with its stock dropping 5.34% and a trading volume of $24.75 billion. RBC Analyst Tom Narayan lowered its target price from $440 to $320, citing reduced expectations for the pricing of Tesla's autonomous driving technology and its market acceptance. JPMorgan predicts Tesla's stock might fall to $120, while Mizuho Securities further lowered its target price to $85.
Meta Platforms ranked third, with its stock declining 3.73% with a trading volume of $11.619 billion, fully retracing its gains since the start of the year. Andrew Ferguson, Chairman of the Federal Trade Commission (FTC), revealed that the FTC is preparing an antitrust trial involving Meta, set to commence on April 14 for eight weeks, addressing whether Meta must sell Instagram and WhatsApp. Increased regulatory uncertainty has put pressure on Meta's stock price.
Apple closed down 0.61%, with a trading volume of $8.817 billion. The German Federal Supreme Court ruled against Apple's appeal regarding a regulatory assessment, indicating that Apple will face stricter regulations in Germany. The court also denied Apple's request for a further appeal to the European Court. Apple's app store has been under scrutiny in Europe, with regulators concerned about its data-gathering practices. This loss places Apple alongside Alphabet (Google) and Meta as major tech giants under German regulatory focus.
Alphabet's Class A shares closed down 2.20%, with a trading volume of $6.714 billion. NVIDIA announced a partnership with Google's DeepMind and Disney Research to develop the open-source physics engine Newton, aiming to enhance robots' ability to handle complex tasks. Microsoft's stock dropped 1.33%, with a trading volume of $6.701 billion, amid reports that Microsoft is collaborating with Adobe to offer smart support for marketers through the AI assistant of Microsoft 365 Copilot.
Strategy shares fell 3.77%, with a trading volume of $4.333 billion. The company announced plans to issue $500 million in preferred stock called "Strife," with a 10% coupon rate and structured as perpetually non-redeemable, expected to list on NASDAQ with the ticker STRF. In contrast, another batch of previously issued convertible preferred stock "Strike" (STRK) is currently trading around $86, with a yield of 9.3%. The newly issued Strife preferred stock holds a higher repayment priority than STRK but does not have the right to convert into common shares.
Intel's stock rose 0.90%, with a trading volume of $3.352 billion, marking the fifth consecutive trading day of gains with a cumulative rise of 31%. The new CEO, John Chen, plans to restructure the chip foundry and AI chip business, with potential layoffs. Sources reveal that Chen indicated in a recent company meeting that the company needs to make "difficult decisions," which is interpreted by the market as a potential layoff to optimize the business structure.
Alibaba's stock fell 3.27%, with a trading volume of $2.997 billion. AppLovin's stock plummeted 9.13%, with a trading volume of $2.453 billion. The investment institution Jefferies reiterated a "buy" rating for AppLovin, setting a target price of $600, more than double the current stock price of $278.84, believing the company still offers opportunities for long-term investors.
Overall, tech stocks generally declined amid the intersection of AI development and regulatory pressures, with cautious market sentiment and investors closely watching future policy dynamics and technology industry trends.
