FreshForex News

[FreshForex]

Tech giants and a major crypto exchange under pressure: what triggered the market crash?

Recently, the stocks of Advanced Micro Devices (#AMD), Coinbase Global Inc. (#Coinbase), Oracle Corp. (#Oracle), NVIDIA Corp. (#NVIDIA), and Arm Holdings plc (#Arm) have come under pressure amid a reassessment of artificial intelligence (AI) valuations and growing caution toward risk assets. Investors are reacting nervously to the cost of capital, the pace of AI monetization, and the resilience of demand within adjacent ecosystems.

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5 Factors Behind the Decline:

• #AMD (−10.33%) — profit-taking after a strong rally and growing doubts about the scalability of server GPUs. Additional pressure comes from margin risks driven by aggressive capital spending and competition in high-performance GPU accelerators.
  
• #Coinbase (−10.31%) — a weakening crypto market reduces trading volumes and fee revenue. Regulatory risks and volatile client flows deepen the valuation discounts.
  
• #Oracle (−10.29%) — concerns over rising debt levels amid heavy investments in cloud and AI infrastructure. The market fears shrinking free cash flow and pressure on valuation multiples if growth slows.
  
• #NVIDIA (−4.08%) — “overvaluation + maxed-out expectations”: even strong earnings reports fail to calm concerns about cyclical demand in data centers. Added to this are risks of margin normalization and potential inventory build-ups among customers.
  
• #Arm (−3.02%) — high sensitivity to sell-offs in the “AI sector,” especially given its premium valuation. Investors question how quickly the royalty-based model can translate into stable accelerated growth.
  

If concerns about AI-related spending and uncertainty around interest rates persist, stocks inflated by AI and crypto market expectations may continue to fall. Further capital outflows or rising borrowing costs would serve as triggers for additional downside.

FreshForex analysts see potential for a correction in #AMD, #NVIDIA, #Arm, #Oracle, and #Coinbase due to slowing AI infrastructure growth and persistently high capital costs. For #Coinbase, elevated crypto market volatility is an additional pressure factor. The current market situation creates conditions for developing scenarios for asset price declines.

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