Shares of technology companies fell as traders continued to sell out of 2024 leaders.
The Roundhill Magnificent Seven exchange-traded fund, which tracks the seven largest U.S. tech firms, is now down by almost 2% for 2025 so far, having risen by more than 30% during 2024.
Shares of Nvidia, which reports earnings later this week, fell 3% Monday and is down almost 6% for the year to date. The maker of chips for artificial-intelligence development will have even more investor attention on its earnings than previously. "It'll be the first since DeepSeek became a household name," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "Nvidia remains the posterchild for AI in general in my mind."
Tesla is another major 2025 laggards, amid signs that Chief Executive Elon Musk has been distracted by his role in the Trump administration. IPhone maker Apple said it plans to spend more than $500 billion over the next four years, touting a mixture of new and existing initiatives that it said will expand its manufacturing footprint in the U.S. Apple is eager to stay out of the "tariff crosshairs," said Joyce.
South African tech investor Prosus agreed to buy Anglo-Dutch food courier Just Eat Takeaway.com for $4.29 billion, using the war chest it built by selling part of its stake in Chinese Internet firm Tencent to bulk up its food-delivery arm.
In a good sign for AI investment, Anthropic is finalizing a $3.5 billion funding round that values the startup behind the chatbot Claude at $61.5 billion, showing how eager investors are to back promising AI companies despite the disruptive arrival of China's DeepSeek. Shares of AI software firm Palantir Technologies continued their recent rout and are now down by roughly 25% from highs earlier in February.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-24-25 1750ET
