Wall Street’s major indices ended in the negative territory on Wednesday as investors parked funds to minimize risks from the resumption of trade war among the world’s largest economies, with a fresh round of tariffs scheduled to be implemented next week.
The tech-heavy Nasdaq fell the hardest, down 2.04 percent, followed by the S&P 500, down 1.12 percent. The Dow Jones declined by 0.31 percent.
According to President Donald Trump, all vehicles made outside of the US would be slapped with a 25-percent tariff.
The broader market downturn spilled over into 10 companies—predominantly AI stocks—further dampened by a cautious outlook on the industry. In this article, we listed Wednesday’s 10 worst performers and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.
Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels
10. SoundHound AI Inc. (NASDAQ:SOUN)
Shares of SoundHound AI fell for a second day on Wednesday, losing 8.04 percent to finish at $9.38 apiece as investors continued to sell off positions following bearish outlooks from experts.
In his recent episode of Mad Money, host Jim Cramer suggested selling SOUN, saying that it was a “meme stock.”
“I think it’s a meme stock and I’m just going to call them as meme stocks from now on because, look, you can’t really value it… I can’t help you with something like SoundHound, because it’s a meme stock. It’s going to go wherever the meme people want it to go and good luck with them,” he said.
Meanwhile, sentiment was further dampened by a top Alibaba (NYSE:BABA) executive’s comments that the AI industry has become a bubble.
“I’m still astounded by the type of numbers that are being thrown around in the U.S. about investing into AI,” said BABA Chairman Joe Tsai.
“I think in a way, people are investing ahead of the demand that they’re seeing today, but they are projecting much bigger demand,” he said.
9. Super Micro Computer Inc. (NASDAQ:SMCI)
Super Micro fell for a third straight day on Wednesday, shedding 8.86 percent to close at $37.04 apiece as investor sentiment was dragged by sour comments on the general Artificial Intelligence industry coupled with an investment banking firm’s rating downgrade for the company.
At the HSBC Global Investment Summit in Hong Kong, Alibaba (NYSE:BABA) Chairman Joe Tsai warned investors about the ongoing bubble in AI.
“I’m still astounded by the type of numbers that are being thrown around in the U.S. about investing into AI,” he said. “I think in a way, people are investing ahead of the demand that they’re seeing today, but they are projecting much bigger demand.”
Meanwhile, Goldman Sachs lowered its stock rating for SMCI to “sell” from “neutral” previously, amid heightened competition in AI servers, margin pressures, and valuation concerns.
It also reduced its price target for the company by 20 percent to $32 from $40 previously, which was 13.6 percent lower than the company’s closing price on Wednesday.
8. Oklo Inc. (NYSE:OKLO)
Oklo shares dropped for a second straight day on Wednesday, shedding 8.85 percent to finish at $26.37 apiece as investors reacted to bearish comments from a market expert.
In Monday’s episode of Mad Money, host Jim Cramer underscored that it was “way too early” to jump into OKLO shares.
“I’ll tell you what we really don’t need—we don’t need the nuclear fission through Oklo. A total fan favorite. That’s one of the most speculative stocks out there… It’s frightening when you own a stock because of quantum computing prospects and then those hopes are dashed by an authoritative expert,” he underscored.
In its latest earnings results, OKLO said net loss widened by 129 percent to $73.6 million last year from $32.17 million in 2023, amid a 183-percent jump in operating losses to $52.8 million from $18.6 million year-on-year.
Despite the performance, OKLO said it was optimistic about its business outlook for the year.
7. Nebius Group NV (NASDAQ:NBIS)
Shares of Nebius Group fell by 9.05 percent on Wednesday to end at $24.71 apiece as investors sold off positions after earning a bearish outlook from a stock market expert.
In a recent episode of Mad Money, host Jim Cramer said he does not recommend stocks that are losing fortunes, “and Nebius is losing fortunes.”
“It’s a big money loser that people are buying because it’s part of all of everything that’s going on right now in the cloud. I don’t want to be a part of it,” he said.
In recent news, NBIS announced its role as an early adopter cloud provider of the NVIDIA Blackwell Ultra platform offering NVIDIA GB300 NVL72-powered instances by the end of 2025. The instances were said to be accelerated by 72 NVIDIA Blackwell Ultra GPUs.
NBIS said it plans to make NVIDIA Blackwell GPU capacity generally available to its US data centers by the second quarter of the year, with its New Jersey data center expected to be exclusive to the platform’s GPUs. Meanwhile, its facility in Kansas will deploy NVIDIA HGX B2000.
Meanwhile, NBIS was also named an ecosystem partner for the NVIDIA Dynamo Inference Engine, an open-source framework for the deployment of generative AI that increases DeepSeek-R1 throughput by 30x on NVIDIA Blackwell.
6. Tempus AI Inc. (NASDAQ:TEM)
Tempus AI dropped its share prices for a second straight day on Wednesday, losing 9.08 percent to finish at $53.25 ahead of the Annual Needham Virtual Healthcare Conference from April 7 to 10, 2025.
According to TEM, its chief finance officer, Jim Rogers, would participate in a fireside discussion at the conference on Wednesday, April 9.
Meanwhile, sentiment was further dragged by an overall bearish sentiment on AI stocks after Alibaba (NYSE:BABA) Chairman Joe Tsai said that the industry has become a bubble.
“I’m still astounded by the type of numbers that are being thrown around in the U.S. about investing into AI,” he said. “I think in a way, people are investing ahead of the demand that they’re seeing today, but they are projecting much bigger demand.”
5. Aurora Innovation Inc. (NASDAQ:AUR)
Aurora Innovation declined by 9.07 percent on Wednesday to end at $7.12 apiece as investors repositioned portfolios ahead of the launch of its driverless trucks, allowing its vehicles to operate without a driver even in harsh weather.
In a statement, AUR said it is now in the final stages of launching its commercial self-driving trucking service in Texas scheduled for next month.
It released a Driverless Safety Report, which explains how AUR’s safety approach affects every part of its organization and how best practices from other safety-critical industries inform internal processes.
The autonomous trucks are expected to begin operating on public roads in Texas, New Mexico, and Arizona this year, adhering to speed limits ranging between 25 miles and 75 miles per hour.
It added that the trucks will function day and night, in suburban and urban areas, dense traffic, and in highway construction zones with cones and barriers.
4. Hims & Hers Health Inc. (NYSE:HIMS)
Hims & Hers tumbled by 9.94 percent on Wednesday to finish at $33.36 each as investors continued to sell off positions after earning a rating downgrade from an investment bank recently.
Last week, Bank of America gave the company a higher price target of $22, up by $1 from $21 previously. However, the new price target became a low blow for the firm, being 34 percent lower than its latest closing price.
Bank of America also assigned an “underperform” rating on HIMS.
Last month, HIMS saw a spike in sales from the Super Bowl event, but investors are now having doubts about its ability to sustain its momentum following the Food and Drug Administration’s (FDA) announcement that the bestselling Wegovy and Ozempic, manufactured by HIMS’ competitor Novo Nordisk, are back in sufficient supply and now out from the shortage list.
It can be learned that HIMS has been making a compounded knock-off version of the two treatments that propelled its sales over the past few years.
3. Celestica Inc. (NYSE:CLS)
Celestica dropped its share prices by 9.97 percent on Wednesday to end at $87.66 apiece as investors repositioned portfolios following bearish remarks on the Artificial Intelligence industry.
CLS, an electronics manufacturer heavily investing in the AI industry, traded lower in line with its peers after Alibaba (NYSE:BABA) Chairman Joe Tsai posted sour comments on the industry’s heavy investments in AI, saying it has become a bubble.
“I think in a way, people are investing ahead of the demand that they’re seeing today, but they are projecting much bigger demand,” he said.
Just recently, the company announced that it achieved revenues of $2.55 billion in the fourth quarter of 2024, showing a 19 percent increase from the $2.14 billion in the fourth quarter of 2023.
Earnings per share during the same period also surged to $1.29 from 77 cents year-on-year.
For this year, CLS posted confidence that it would achieve improved business and earnings performance, as it raised its full-year outlook as a reflection of the strengthening demand in its Connectivity and Clouds Solutions segment.
2. Vertiv Holdings Co. (NYSE:VRT)
Vertiv Holdings nosedived by 10.88 percent on Wednesday to finish at $81.62 apiece as investors soured on bearish outlooks from two analysts.
Barclays lowered its price target for the company to $100 from $110 previously but maintained an equal weight rating on VRT.
According to the investment firm, VRT’s orders in the first quarter of the year would not seem to translate to high-teens growth in 2026.
In addition, Barclays turned cautious following Alibaba (NYSE:BABA) Chairman Joe Tsai’s sour comments on the AI sector, saying that it has become “a bubble.”
For its part, TD Cowen underscored the noticeable slowdown in orders for data center equipment that is hurting demand for its cooling systems.
The shift began in January this year when technology giants Microsoft and Google began redesigning their data centers to cram more power-hungry equipment into each server rack.
It underscored that neither the hyperscalers nor the third-party data centers would be able to place orders until the new designs are finished.
1. Core Scientific Inc. (NASDAQ:CORZ)
Core Scientific dropped for a second day on Wednesday, losing 11.89 percent to end at $7.63 each, in line with its AI and Bitcoin mining counterparts.
As of this writing, the price of Bitcoin was down by 0.10 percent at $86,835 apiece, as traders disposed of positions after President Donald Trump announced a fresh round of tariffs on vehicles manufactured outside the US.
Meanwhile, CORZ was also dampened by bearish remarks from Alibaba (NYSE:BABA) Chairman Joe Tsai that the AI sector has become a bubble.
“I’m still astounded by the type of numbers that are being thrown around in the U.S. about investing into AI,” he said. “I think in a way, people are investing ahead of the demand that they’re seeing today, but they are projecting much bigger demand.”
CORZ is a company focused on digital infrastructure for high-value, innovative, networked digital solutions such as the Bitcoin Network, other digital assets, AI Compute, and others.
While we acknowledge the potential of CORZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CORZ but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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