Tech and AI stocks plunge as market selloff hits Core Scientific, Vertiv, Root, and more

The U.S. stock market suffered a broad selloff on March 26, with technology and AI-driven companies taking the hardest hit. The S&P 500 lost 1.1%, closing at 5,712.20, while the Nasdaq Composite tumbled 2% to 17,899.01, marking its steepest single-day drop in over two weeks. The downturn came as investors reacted to new trade tariffs, economic uncertainty, and profit-taking after recent gains.

A mix of rising inflation concerns and shifts in global trade policies contributed to the slide. Market volatility spiked after U.S. President Donald Trump announced a 25% tariff on auto imports, a move designed to incentivize domestic manufacturing. The policy rattled investor confidence, particularly in sectors reliant on international supply chains. Many technology, AI, and blockchain-related companies faced aggressive selloffs as traders recalibrated their portfolios in response to shifting economic conditions.

Which Stocks Were the Biggest Losers?

Core Scientific, Vertiv Holdings, and Root Inc. Face Heavy Losses

Core Scientific, a leading provider of blockchain infrastructure, saw its stock price collapse by 11.89% to $7.63. The company has struggled with fluctuating cryptocurrency valuations, increased regulatory scrutiny, and heightened competition in the blockchain mining space. Recent declines in Bitcoin’s price further pressured investor sentiment, leading to a widespread selloff in mining-related stocks.

Vertiv Holdings, which specializes in AI-driven computing infrastructure, fell 10.88% to $81.62. The stock had previously seen substantial gains, benefiting from the surge in demand for high-performance data centers. However, concerns about supply chain constraints and higher material costs led to profit-taking, causing a sharp decline.

Root Inc., a digital-first insurance company, dropped 10.35% to $151.11. Despite earlier optimism about insurtech’s ability to disrupt traditional insurance models, investors have become increasingly wary of the sector’s profitability challenges. The high cost of customer acquisition and the complex regulatory environment have weighed on Root’s stock in recent months.

AI Stocks Struggle as Investor Confidence Weakens

Tempus AI, a healthcare-focused artificial intelligence company, lost 9.08%, bringing its stock down to $53.25. While AI adoption in healthcare continues to expand, Tempus faces growing competition from established technology giants and concerns over data privacy regulations.

SoundHound AI, which specializes in voice recognition and conversational AI, saw its shares decline 8.04% to $9.38. The AI sector has been under pressure as companies struggle to monetize large-scale language models effectively.

Autonomous vehicle companies also faced a sharp downturn. Pony AI fell 9.14% to $11.03, while Aurora Innovation saw its stock drop 9.07% to $7.12. Both firms are contending with increasing regulatory scrutiny and slower-than-expected adoption of self-driving technology. The industry’s high capital requirements and prolonged commercialization timelines have made it a riskier bet for investors.

How Did Trump’s Auto Tariffs Impact Tesla and Other Stocks?

The newly announced 25% tariff on auto imports sent ripples through the automobile and tech sectors. Tesla, which relies on a global supply chain for its manufacturing operations, saw its stock fall 5.6%, adding to a 32.6% year-to-date decline. The policy shift has raised concerns about the impact on production costs and consumer demand.

Carvana, an online used-car retailer, suffered a 7.57% decline to $204.87. The company has faced headwinds from fluctuating vehicle prices and shifting consumer preferences, and the new tariff announcement has only intensified worries about affordability in the auto market.

WeRide, another autonomous vehicle company, fell 7.20% to $14.95, reflecting broader uncertainty in the self-driving industry. Companies developing autonomous technologies have struggled to scale operations amid regulatory delays and infrastructure challenges.

Why Did Semiconductor and Cloud Computing Stocks Decline?

Super Micro Computer, a provider of high-performance server solutions, fell 8.86% to $37.04. The company has been dealing with component shortages and increased competition from cloud giants such as Amazon Web Services and Microsoft Azure.

Arm Holdings, a key player in semiconductor design, dropped 7.52% to $114.93. The stock had previously surged on strong earnings, but concerns over licensing revenues and competition from Nvidia and AMD triggered a selloff.

Credo Technology, which specializes in AI-powered semiconductor solutions, fell 8.60% to $44.95. The broader semiconductor sector has faced supply chain issues and trade policy uncertainties, which have led to volatility in chip stocks.

Cloud computing companies also struggled. Nebius Group lost 9.05%, dropping to $24.71, while data management firm Rubrik saw its stock fall 7.63% to $68.61. Investors have grown cautious about valuations in the cloud sector, especially as competition intensifies among major players.

How Did Media and Retail Stocks Perform?

Trump Media & Technology Group Corp. saw its shares plummet 8.44% to $20.94. The stock has been highly volatile, with political factors playing a significant role in its movements. Increased speculation about the company’s long-term prospects has led to sharp price swings.

Robinhood Markets, a retail trading platform, declined 7.10% to $44.73 as trading activity among individual investors slowed. With interest rate hikes and economic uncertainty looming, retail brokerage firms have faced reduced engagement from their core customer base.

How Did the Cryptocurrency Sector React to Market Declines?

The downturn in cryptocurrency prices put further pressure on stocks tied to digital assets. Riot Platforms, a leading Bitcoin mining company, fell 7.17% to $7.90 as Bitcoin’s price slipped below key technical levels. The company has faced challenges related to rising energy costs and increasing regulatory scrutiny of crypto mining operations.

DLocal, a digital payments company with exposure to emerging markets, saw its shares decline 9.25% to $8.78. Currency fluctuations and regulatory uncertainties have made investors more cautious about fintech companies operating in volatile regions.

Where Does the Market Go From Here?

The sharp selloff in AI, tech, and crypto stocks has prompted analysts to adjust their outlooks. Barclays has revised its year-end S&P 500 target down to 5,900 from 6,600, citing concerns over inflation, tariffs, and global supply chain disruptions.

Investor sentiment remains cautious as uncertainty around trade policies and interest rate decisions looms. The next few weeks will be crucial in determining whether this downturn is a temporary correction or the beginning of a more extended period of volatility. Market participants will closely monitor upcoming economic data, corporate earnings, and policy announcements to gauge the trajectory of stocks moving forward.