Nvidia, Tesla lead tech stocks lower as Trump trade war threats rattle market

Nvidia (NVDA), Tesla (TSLA) and different tech stocks fell crossed the committee Tuesday arsenic President Trump’s escalation of commercialized warfare threats to Europe shook markets.

Shares successful AI chipmakers Nvidia and Broadcom (AVGO) dropped much than 3%. Tesla (TSLA) and Amazon (AMZN) sank astir 3%, portion Meta (META), Alphabet (GOOGL), and Apple (AAPL) dipped astir 2%.

Oracle (ORCL) — the AI unreality supplier carrying indebtedness precariously adjacent to junk-bond presumption — saw shares diminution astir 4%. Meanwhile, Nvidia-backed emerging AI unreality firms Nebius (NBIS) and CoreWeave (CRWV) shed implicit 6% and 4%, respectively.

Overall, the tech-heavy Nasdaq Composite's (^IXIC) 1.7% driblet led large indexes down Tuesday to commencement a holiday-shortened trading week aft Trump doubled down connected his menace to inhabit Greenland and adhd caller tariffs connected European nations. The moves added to the hazard of dooming the United States' 80-year aged diplomatic confederation with the continent, up of a gathering of satellite leaders astatine the World Economic Forum successful Davos.

Tuesday’s tech selloff acceptable the accustomed playbook of investors rotating retired of riskier bets during a marketplace drawdown. But the descent besides highlighted continued unease from investors arsenic they interest implicit a imaginable AI bubble, analysts told Yahoo Finance.

Although a rosy outlook connected the AI marketplace from spot shaper TSMC (TSM) helped boost tech names past week, the Magnificent Seven stocks person lagged large indexes truthful acold successful 2026. According to Bloomberg data, the radical of Big Tech stocks has collectively dropped much than 3% successful January, portion the Nasdaq Composite is conscionable beneath the flatline and the S&P 500 (^GSPC) is fractionally affirmative implicit the aforesaid period.

Noting the “massive underperformance” of ample headdress tech stocks successful the past respective weeks, Hedgeye Risk Management expert Sam Rahman said: “There's been truthful overmuch spending connected AI-related capex … investors are intelligibly acrophobic astir what returns they're gonna get from each the spending.”

Meanwhile, Wedbush expert and tech bull Dan Ives saw Tuesday's pullback arsenic a buying opportunity, penning successful a enactment to clients: "The backmost and distant warfare of words betwixt Trump and the EU volition springiness investors different accidental to ain the tech winners and contempt the bears ever trying to outcry occurrence successful a crowded theater......the AI Revolution is inactive successful the aboriginal days of playing out."

More volition beryllium revealed astir however manufacture giants are monetizing their AI investments arsenic tech net statesman successful earnest implicit the adjacent fewer weeks. On platform this week is Intel, portion megacaps Tesla, Meta, and Microsoft volition footwear disconnected reports from the Magnificent Seven connected Jan. 28.