TechFlow news, March 7 — According to Jinshi News, the Nasdaq 100 Index fell 10.2% from its peak last month on Friday, officially entering a correction phase. This sell-off primarily reflects weakening investor confidence in artificial intelligence-related companies, as Wall Street capital rapidly exits the sector.
As of the close on March 7, Nvidia's market value has shrunk by more than one-fifth since the Nasdaq 100 hit a record high on February 19, accounting for 18% of the index's overall decline. Other tech giants that underperformed during the same period include Tesla, Apple, Palantir Technologies, Meta Platforms, and Amazon.
George Cipolloni, portfolio manager at Penn Mutual Asset Management, said: "For the past few years, the U.S. tech 'Magnificent Seven' have performed exceptionally well, with strong revenue and profit growth, justifying their current premium valuations. But that situation has changed. While large-cap tech companies delivered solid earnings last quarter, their growth potential appears limited at current price-to-earnings levels."
