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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 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 correction territory, defined as a fall of at least 10% from recent highs.

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 'Magnificent Seven' 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 AI infrastructure — 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)

Disclaimer: We advise investors to check with certified experts before making any investment decisions.Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments.

He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom.

During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles.

He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements.

His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.

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