Ten technology and energy companies suffered a bloodbath on Wednesday, primarily due to profit-taking following the previous day’s gains and bearish comments surrounding the progress of quantum computing development.
In this article, we will look at the performance of some of the worst-performing companies and explore the factors behind their decline.
We considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume to come up with Wednesday’s top losers.
A close-up of a circuit board, its microchips creating a powerful computing system.
10. Plug Power Inc. (PLUG)
Plug Power (PLUG) dropped for a second day on Wednesday, losing 9.49 percent to close at $2.67 apiece as investor sentiment was dampened by reports that incoming president Donald Trump is set to be more aggressive in implementing tariffs on imports as soon as he enters office this month.
According to reports, Trump is considering declaring a national economic emergency in order to use import management powers granted to the president through the International Economic Emergency Powers Act.
Markets were already reeling from his promise to jack up tariffs as soon as he enters office in two weeks. Earlier, he signaled a 10-percent tax on global imports, 60 percent on Chinese goods, and a 25-percent surcharge on Canadian and Mexican products.
Plug Power (PLUG), headquartered in the United States, mostly sources its components manufactured outside of the country, and any imposition of additional tariffs could put further pressure on its profitability and financial performance.
9. Terawulf Inc. (WULF)
Shares of Terawulf (WULF) dropped for a second day on Wednesday, losing 10.11 percent to finish at $5.51 apiece after the company earned downgraded ratings from analysts.
In a recent development, Roth Capital analyst Darren Aftahi adjusted his earnings projections for the company for the fiscal year 2024 and the fourth quarter of 2025.
For the full-year 2024, Aftahi increased his loss projections for Terawulf to $0.17 per share from $0.09 previously, indicating a more cautious outlook for the company’s near-term profitability as it navigates market challenges and capital expenditures.
Terawulf (WULF), a Bitcoin mining firm, also dropped in conjunction with Bitcoin prices, which dipped by 0.14 percent on Wednesday to $94,900.
8. Edison International (EIX)
Shares of Edison International (EIX) dived by 10.18 percent on Wednesday to finish at $69.50 apiece, its largest decline since September 2022, after news that its subsidiary Southern California Edison, implemented a power shutdown affecting 114,000 customers due to ongoing wildfires in the region.
Multiple large fires are burning around Los Angeles aggravated by strong winds. According to a report by Associated Press, tens of thousands of people have been ordered to evacuate and at least two people have died.
While the company did not provide any timeline as to when electricity service will be restored, it said that the shutdown was part of its precautionary measures to prevent further wildfire-related damages.
7. Oklo Inc. (OKLO)
Shares of Oklo (OKLO) dropped by 11.46 percent to finish at $26.12 each on Wednesday after Nvidia Corp. Chief Executive Officer Jensen Huang’s recent statement that very useful quantum computers may still be more than 15 years away.
Oklo (OKLO), along with other nuclear energy counterparts, all posted declines. According to Wedbush analyst Dan Ives in an interview with the Wall Street Journal, investors have hoped that the boom in artificial intelligence and data centers would fuel the growth of nuclear energy companies.
In other developments, the sell-off was also partly due to profit-taking after the company rose to an all-time high on Monday, reaching $28.34 each.
6. Rumble Inc. (RUM)
Rumble (RUM) saw its shares decline by 12.27 percent on Wednesday—a second consecutive day—to finish at $11.65 each as investors resorted to profit-taking over the lack of catalysts to spark buying appetite.
Since the start of the year, the company’s current valuation already marked a 10.66-percent drop, indicating investor caution.
Analysts, however, signaled earlier prospects for Rumble (RUM) to remain strong after the company clinched a strategic investment worth $775 million from Tether—the largest company in the digital assets industry and the most widely used dollar stablecoin globally with more than 350 million users.
Over the last few years, Tether has become one of the most recognized symbols of financial inclusion.
According to Rumble (RUM), a total of $250 million of the proceeds will be used to support growth initiatives, and the remaining proceeds to fund a self-tender offer for up to 70 million Class A common shares.
5. Mobileye Global Inc. (MBLY)
Mobileye Global (MBLY) registered a 13.30-percent decline in its share prices on Wednesday, closing the day at $16.95 apiece as investors seemed to have found the company’s presentation at the Consumer Electronics Show (CES) 2025 lacking.
While Mobileye (MBLY) President and CEO Amnon Shashua shared achievements and vision for the future, Bloomberg Intelligence analyst Jake Silverman said that the presentation failed to deliver updates on new commercial milestones. The lack of updates prompted dampened investor sentiment as traders have hoped for a series of design wins that bolstered enthusiasm in last year’s CES.
“Mobileye’s CES address was lacking commercial progress updates following an eventful capital markets day in December, likely causing the negative stock reaction. The company had announced a slate of design wins at last year’s CES, driving high expectations for similar announcements this year. Technological progress toward eyes-off driving appears on track,” Silverman said.
4. Enovix Corp. (ENVX)
Enovix Corp. (ENVX) saw its share price drop by 14.65 percent to finish at $12.23 apiece as investors resorted to profit-taking following gains in the previous day.
In recent news, the company announced that it recently secured a significant pre-paid purchase order from a leading AI and immersive technology company for custom battery solutions designed for Mixed Reality (MR) wearables.
The batteries are expected to power next-generation head-worn devices, including smart glasses and augmented reality products.
According to Enovix (ENVX), initial shipments are scheduled for mid-2025, with production taking place at the company’s Fab2 facility in Penang, Malaysia.
3. SoundHound AI Inc. (SOUN)
SoundHound AI (SOUN) saw its share prices down by 16.44 percent on Wednesday—a third day—to end at $15.02 each.
According to analysts, investors may have expected SoundHound (SOUN) to announce more at this year’s CES trade show. The company at the CES show unveiled its latest technology, which allows people to conversationally order take-out food from participating restaurants directly through their car and pay for it.
According to analysts, traders continued to be triggered by the stock moving back below $20, which can be considered a psychological lower-end price level. Since the start of the year, SoundHound’s (SOUN) shares have been moving on a downward trajectory.
SoundHound AI (SOUN) specializes in voice AI technology, enabling natural language understanding and voice recognition for a wide range of applications. Its solutions power voice assistants, smart devices, and enterprise platforms, allowing businesses to integrate conversational AI for customer interactions.
2. IonQ Inc. (IONQ)
IonQ (IONQ) shares dropped by a whopping 39 percent or $19.34 on Wednesday, finishing the day at $30.25 as investor sentiment was dampened by Nvidia Corp. CEO Jensen Huang’s statement that the practical use of quantum computers is still 15 to 30 years away.
“If you said 15 years for very useful quantum computers, that would probably be on the early side,” Huang said. “If you said 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.”
The Nvidia chief said he thinks the AI chipmaker will play a significant role in the development of quantum computers, and push it toward getting there as fast as possible.
1. Rigetti Computing Inc. (RGTI)
Rigetti Computing (RGTI) suffered a bloodbath on Wednesday, ending the day diving 45.41 percent to finish at $10.04 apiece following statements from Nvidia Corp. chief Jensen Huang that the practical use of quantum computers is still 15 to 30 years away.
RGTI, alongside its quantum computing peers, all posted declines.
In a report, AXS Investments CEO Greg Bassuk was quoted as saying that quantum computing stocks’ valuations have “become a bit lofty” and that he was not surprised by Wednesday’s correction.
“Broad consensus has long been that quantum computing’s mass appeal is years away so there is no real news underpinning today’s negative news,” he added.
While we acknowledge the potential of RGTI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RGTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
