Important points
- On Tuesday, November 11, 2025, semiconductor stocks faced a downturn as major investors offloaded shares in Nvidia. However, shares rallied after the media giant unveiled its savings and investment strategies.
- Paramount Skydance’s stock surged following discussions of an aggressive cost-cutting and investment plan.
- The semiconductor sector broadly declined after SoftBank revealed it had sold its stake in Nvidia.
On Tuesday, semiconductor stocks took a hit as big investors sold off their Nvidia shares, which is notably the world’s leading company by market value. In contrast, the media and entertainment behemoth’s stock experienced an uptick after it announced plans for significant cost reductions and investment initiatives.
U.S. stock indexes exhibited mixed results, with investors keenly awaiting information about a potential resolution to the ongoing government shutdown. The S&P 500 increased by 0.2%, while the Dow saw a rise of 1.2%. The technology sector underperformed, with the tech-heavy Nasdaq decreasing by 0.3%.
SoftBank announced the divestiture of its stake in Nvidia, the leader in AI chip technology. While the company indicated that this decision does not mean it is stepping away from AI, stating that the proceeds will fund investments in OpenAI, it still negatively impacted semiconductor stocks. Nvidia saw a roughly 3% drop, and the PHLX semiconductor index fell by 2.5%.
Concerns regarding the AI boom have extended beyond the semiconductor space to other sectors tied to this technology. For example, shares of Vistra, a nuclear energy company noted for its potential to support AI data centers, dropped by 4.8% on Tuesday. Last week, Vistra reported lower-than-anticipated sales and a decline in net income compared to last year.
Viatris announced growth strategies during the UBS Global Healthcare Conference, leading to a notable 10% jump in its stock, making it the top performer among S&P 500 companies. They expect a 2% to 3% rise in operating revenue, not counting issues related to their Indian facility, and plan to generate substantial revenue from upcoming product launches while returning over $1 billion to shareholders.
Paramount Skydance’s stock climbed by 9.8% after revealing its first quarterly earnings report post-merger between Paramount Global and Skydance Media in August. The company detailed significant cost-cutting measures, which include job layoffs and asset sales in Argentina and Chile, while boosting its cost-cutting targets. Paramount Skydance has also improved its merger savings outlook and highlighted ambitious plans for investments in both its studio and streaming services, alongside an increase in streaming fees.
FedEx shares increased by 5.5% after CFO John Dietrich expressed optimism that second-quarter earnings per share would exceed consensus estimates. A favorable forecast emerged for the critical holiday quarter, following the resilience shown by UPS, despite challenges related to the grounding of its MD-11 cargo plane after last week’s crash. UPS also saw a 2.1% rise.
AppLovin’s stock dipped by 8.7%, marking the largest single-day fall for this index. Although the mobile advertising company surpassed expectations for revenue and profit in its latest quarterly report released on November 5, ongoing scrutiny from the SEC regarding its data collection practices has weighed heavily on its stock price. That said, AppLovin has experienced approximately 85% growth this year, fueled by optimism about its AI-driven Axon platform.
