![\"Palantir,](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/08\/055222da-30cc-4dcc-a6f2-f2768b71fab8.jpg\")
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Palantir, whose CEO is Alex Karp, has fallen over 9pc two days in a row. Photo: Getty<\/p>\n
Nvidia, Palantir and other superstar stocks that had surged in the mania surrounding artificial-intelligence technology dragged Wall Street lower again on Wednesday. The S&P 500 dropped 1pc and the tech heavy Nasdaq share index was 1.8pc lower. Nvidia, whose chips are powering much of the world’s move into AI, dropped 3.7pc following its 3.5pc fall on Tuesday. Controversial software giant Palantir Technologies, another AI darling, sank 9.3pc on Wednesday to add to its 9.4pc decline the day before. <\/p>\n
That massive fall was off all-time highs earlier in the month so brings the stocks back to around the $150 a share price at the end of July. <\/p>\n
Nvidia, which is due to report financial results next week has seen its shares soar 35.5pc since the start of this year.<\/p>\n
Palantir had been up even more sharply, more than doubling, before this week\u2019s tumble Those increases, and big rises for some of their peers had lifted US stocks to all times highs this month, despite the uncertainties hanging over global trade as the Trump White House has torn up agreements with long time trade partners and, in more recent weeks, targeted individual companies including Nvidea, which is to pay an export tax on some sales to China, and Intel, where the US government looks set to take an equity stake. <\/p>\n
Analysts pointed to a confluence of factors behind this week\u2019s tech stock falls, including concerns valuations had overshot, investors exiting profitable positions and a general mood of risk aversion.<\/p>\n
Waning confidence that AI can deliver returns some investors had baked into their assumptions is also likely to be a factor, especially after Open AI\u2019s launch of ChatGPT 5 fell short of customer and investor hopes. <\/p>\n
A study from the Massachusetts Institute of Technology\u2019s influential Nanda Initiative that found most corporations are not yet seeing any measurable return from their generative AI investments, may have spooked some investors, according to Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management.<\/p>\n
Wariness over the implications of Donald Trump’s moves into directly engaging with tech companies is also likely to be weighing on sentiment. <\/p>\n
Analysts say the highs the market is coming off are also a factor.<\/p>\n
“I think we were priced for perfection in the US and there was quite a lot of complacency in markets, so some summer volatility should have been expected,” said Ben Laidler, head of equity strategy at Bradesco BBI.<\/p>\n
(Additional reporting Reuters)<\/p>\n","protected":false},"excerpt":{"rendered":"Palantir, whose CEO is Alex Karp, has fallen over 9pc two days in a row. Photo: Getty Nvidia,…\n","protected":false},"author":2,"featured_media":12373,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[79,10891,18,19,17,455],"class_list":{"0":"post-12372","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-donal-odonovan","10":"tag-eire","11":"tag-ie","12":"tag-ireland","13":"tag-technology-news"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/12372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=12372"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/12372\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/12373"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=12372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=12372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=12372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}