Tech stocks declined in August amid renewed skepticism about the limits to AI-led growth, with Nvidia, Marvell Technology, and Super Micro Computer underperforming the broader market. The Nasdaq 100 closed down 1.22% on Friday and finished the month down 0.16% while the S&P 500 rose 3.56%. Futures traded flat over the Labor Day holiday, signaling muted expectations for tech at the next open. Concerns intensified after Marvell guided for flat data-center revenue and Nvidia reported slowing data-center revenue growth partly due to a pause in AI chip sales to China. An MIT study found that 95% of companies have yet to see an AI investment return.
"They're trading flat this morning, implying that investors are not expecting much from tech stocks once the opening bell rings in New York on Tuesday. The Nasdaq 100 closed down for the month of August (-0.16%) even though the broader S&P 500 was up 3.56%. Tech stocks were dogged all month by discussion about whether AI was in a bubble. And a study by MIT suggested that 95% of companies have yet to see a return on their investment in AI."
"Nvidia (-3.32% on Friday) was a major driver of this softness, losing ground after Marvell Technology's outlook raised doubts over demand for data-centre equipment and as China's Alibaba unveiled a new AI Chip. Last Wednesday Nvidia's results had delivered a modest quarterly beat but saw slowing revenue growth for the data centre division, in part due to a pause in sales of AI chips to China."
"Marvell Technology is based in Santa Clara, California, and makes semiconductor chips. It has a partnership with Nvidia. On its fiscal Q2 2026 earnings call on August 28, CEO Matt Murphy said, "We expect overall data center revenue in the third quarter to be flat sequentially." Flat is not up, and that sent Marvell's stock down 19% the next day. (In May, Marvell cancelled its investor day presentations, citing macroeconomic uncertainty.)"
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