Last night! Chip stocks plummeted across the board! Nvidia experienced a rare plunge.

Nvidia registers its biggest single-day drop in 10 months, with chip stocks plunging across the board.

As of February 26 local time, the three major U.S. stock indexes closed mixed. The Nasdaq fell 1.18%, the S&P 500 index fell 0.54%, and the Dow rose 0.03%. Among them, Nvidia fell more than 5%, posting the biggest single-day drop in 10 months. The Nasdaq Golden Dragon China Index fell 1.78%, and most of the popular Chinese concept stocks also fell.

Chip stocks plunge across the board as Nvidia drops sharply

On Thursday local time, Nvidia’s share price fell 5.46%, dragging down the semiconductor sector and the S&P 500 index. Goldman Sachs said that although Nvidia’s revenue grew 73% year over year and it gave an optimistic outlook for its artificial intelligence business, the stock still fell sharply. Analysts said this reflected profit-taking after the positive earnings news was realized, as well as market concerns about the sustainability of artificial intelligence capital expenditures by hyperscale cloud service providers.

Comments from Michael Burry, the prototype of The Big Short, further intensified market worries. He said that Nvidia’s current procurement commitments are as high as $95.2 billion, while a year ago they were only $16.1 billion, and if demand fluctuates, it could pose risks.

Affected by Nvidia’s sharp drop, chip stocks plunged across the board, with the Philadelphia Semiconductor Index down more than 3%. Among individual stocks, CREDO TECHNOLOGY fell more than 7%, COHERENT fell more than 6%, Applied Materials, Lam Research, ASML and others fell more than 4%, GlobalFoundries, Advanced Micro Devices, Broadcom and others fell more than 3%, Intel, TSMC, and ON Semiconductor and others fell more than 2%, and ARM fell nearly 2%.

The rest of the large-cap tech stocks saw mixed performance, with Tesla down more than 2%, Google A and Amazon down more than 1%, and Apple slightly lower. Meanwhile, Netflix rose more than 2%, while Microsoft and Meta rose slightly. The storage-related theme overall weakened: SanDisk rose more than 3%, but Micron Technology fell more than 3%, Seagate Technology fell 2.89%, Western Digital fell 2.99%, and Pure Storage crashed more than 10% after its earnings.

In addition, most popular Chinese concept stocks also fell. Miniso Group and Baidu fell more than 5%, iQIYI and Bilibili fell more than 3%, and Li Auto, Alibaba, and Kingsoft Cloud fell more than 2%. Among Chinese concept stocks that rose, Vipshop rose more than 2%, Pony.ai rose more than 4%, and ENEVO Group rose more than 17%.

Multiple risks exist for the U.S. economy

On February 25 local time, the International Monetary Fund (IMF) released its U.S. 2026 Article IV consultation statement, forecasting that real U.S. GDP will grow 2.6% in 2026. The IMF warned that issues such as tariffs and debt are creating risks to the outlook for U.S. economic growth.

The statement said that higher U.S. tariff rates would constitute negative supply shocks to the country’s economy, and are expected to raise the year-over-year growth rate of the price index for personal consumption expenditures and reduce the level of economic output. The IMF expects the U.S. unemployment rate to remain at nearly the 4% level in 2026 to 2027. Excluding the inflation factor, real U.S. GDP will grow by 2.6% and 2.1% in 2026 and 2027, respectively.

In the statement, the IMF warned that the adverse effects of U.S. trade protectionist policies on its own economic activities may be greater than expected. Including tariffs and export controls, when trade and investment measures are implemented for national security reasons, these policies should be kept within a relatively narrow scope, so as to minimize their negative impacts on both domestic and foreign sides.

IMF Managing Director Kristalina Georgieva advised that the U.S. government must place emphasis on reducing the levels of debt and deficits. The U.S. should work with its trade partners to eliminate concerns about unfair trade practices, and promote reductions in trade restrictions that have negative impacts, among other measures.