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2 Tumbling Mega-Cap Stocks That Could Keep Crashing

Wesley ParkSaturday, Mar 15, 2025 2:30 pm ET
3min read

Listen up, folks! We're in the midst of a market meltdown, and two of the biggest names in tech are taking a beating. nvidia and tesla, once the darlings of Wall Street, are now the poster children for market mayhem. Let's dive in and see why these mega-cap stocks could keep crashing!



Nvidia: The AI boom is Busting

Nvidia, the king of AI accelerators, has seen its stock plummet around 20% from its 52-week high. Despite impressive results and booming demand, the market is losing faith. DeepSeek, a Chinese AI startup, has shown that more powerful AI models don't necessarily require ever-increasing computing horsepower. This is a game-changer, folks! If AI companies hit a ceiling on capabilities, the massive build-out of AI computing capacity could lead to oversupply. And that, my friends, is a recipe for disaster!

OpenAI's latest GPT-4.5 model is a perfect example. It's wildly expensive and represents a minor improvement at best over previous models. Companies like apple are struggling to deliver on promised AI features, and OpenAI's Operator has been called "brittle and occasionally erratic." This raises serious questions about the industry's ability to deliver on its promises.

Nvidia's growth story depends on AI becoming increasingly more capable over time. If that's not happening, demand for Nvidia's AI chips could fall off a cliff, and the stock would likely follow suit. So, if you're thinking about buying Nvidia, think again! This is a stock that could keep crashing!

Tesla: The Musk Effect is Wearing Off

Tesla, once the poster child for electric vehicles, is now facing a tarnished reputation. CEO Elon Musk's bold predictions about Tesla's future have been met with skepticism. His involvement in global politics and the spread of his attention have likely lost him some fans, and Tesla sales in various European countries are reportedly crashing. Increased competition is part of the equation, but not all of it.

Tesla's reputation is so deeply intertwined with Musk's that even if he were to step down as CEO, it wouldn't undo the damage to the brand. Tesla stock has crashed nearly 50% from its 52-week high, but the company is still valued at around $800 billion. For comparison, both General Motors and Ford are worth less than $50 billion each. Much of Tesla's valuation is built on a foundation of bold promises by Musk about autonomy, humanoid robots, and other future sources of revenue. If the belief among investors in that foundation continues to crumble, it will be a long way down for Tesla stock.

TSLA Interval Closing Price
Name
Date
Interval Closing Price(USD)
TeslaTSLA
20220315-20250314
249.98


The Bottom Line

Folks, the market is a fickle beast, and these two mega-cap stocks are feeling the heat. Nvidia's AI boom is busting, and Tesla's reputation is tarnished. If you're thinking about buying these stocks, think again! This is a market that hates uncertainty, and these two stocks are full of it. So, stay away from Nvidia and Tesla, and keep your eyes peeled for the next big thing. The market is always changing, and you need to be ready to adapt. So, buckle up, folks! It's going to be a wild ride!
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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