IBM Faces Largest Drop in 20 Years Amid AI Selloff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy NVDA?
Source: stocktwits
- IBM Stock Plunge: IBM experienced its steepest drop since 2000 on Monday due to an AI-driven selloff, raising investor concerns about the company's future demand for cloud computing and AI, which could impact market confidence.
- Investor Focus on Events: Attention is on Anthropic's product event expected to unveil new features, while President Trump's State of the Union address may propose new cost-cutting measures, influencing market sentiment.
- Nasdaq Futures Recovery: As of 3:00 AM ET Tuesday, Nasdaq, S&P 500, and Russell 2000 futures rose by 0.2%, and Dow futures increased by 0.1%, indicating signs of market stabilization following a sharp selloff.
- Jefferies Maintains Rating: Despite IBM's stock decline, Jefferies maintains a 'Buy' rating and a $370 price target, emphasizing that the company's anticipated 're-acceleration' hinges on broader industry demand for cloud and automation technologies.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 180.050
Low
200.00
Averages
264.97
High
352.00
Current: 180.050
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Position Consolidation: As the world's most valuable company with a market cap of $4.4 trillion, Nvidia maintains a strong investment appeal despite overall bearish sentiment in tech, thanks to its leadership in the AI chip sector.
- Cautious Investor Sentiment: Analysts suggest that investors should approach Nvidia with caution in the current market environment, as while its business remains strong, the likelihood of the stock doubling in value in the short term is low, necessitating realistic expectations.
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- Cost Advantage: With an expense ratio of just 0.03%, investing $10,000 incurs only $3 in annual fees, significantly lowering investment costs and enhancing long-term return potential for investors.
- Long-Term Return Potential: Since its inception in 2001, the ETF has averaged a 9.2% annual total return, meaning a $10,000 investment would be worth over $90,000 today, demonstrating its effectiveness as a wealth-building tool.
- Concentration Risk and Lack of Diversification: Despite holding many stocks, the ETF's performance is heavily reliant on the top 10 companies, presenting significant concentration risk, while lacking exposure to international stocks and fixed-income assets, which may hinder portfolio diversification.
See More
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- Major Deal Impact: AMD's agreement with Meta to supply up to 6 gigawatts of AI data center processing, valued at over $100 billion, represents a significant win for AMD; however, its high stock valuation raises concerns among investors.
- Financial Performance Divergence: Nvidia's recent Q4 fiscal 2026 results revealed a 65% increase in sales to nearly $216 billion, with adjusted earnings rising 60% to $4.77 per share, indicating strong growth momentum in the AI sector.
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See More
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- Investment Strategies: In a down market, investors might consider Bitcoin-related stocks, particularly those transitioning computing power to AI, which not only provides indirect exposure to Bitcoin but also capitalizes on AI's growth potential.
- Derivatives Trading: Hedge fund managers are actively trading options on the iShares Bitcoin Trust (IBIT), the top Bitcoin ETF globally by assets under management, reflecting sustained interest in Bitcoin derivatives despite their inherent risks.
- Long-Term Holding Strategy: While Bitcoin is currently experiencing cyclical fluctuations, long-term investors may opt to buy and hold Bitcoin at lower prices, anticipating a future price recovery, a strategy that has historically proven effective.
See More
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- AI-Driven Growth: Wix.com reported a 14% year-over-year revenue increase to $524.3 million in Q4, highlighting strong demand for its AI tools, particularly with creative subscriptions rising 12% to $370.4 million, indicating enhanced competitiveness in the market.
- Acquisition and Innovation: In June, Wix acquired the coding platform Base44 for $80 million plus future earn-out payments, further solidifying its innovative capabilities in the AI space, which is expected to drive future business growth.
- Investor Confidence: Institutional investors led by Durable Capital Partners agreed to invest $250 million in equity in Wix, reflecting strong market confidence in its AI-driven expansion strategy, potentially providing more funding support for long-term growth.
- Future Outlook: Wix projects mid-teens percentage revenue growth by 2026, with CFO Lior Shemesh stating that 2026 will be pivotal as the company leverages AI technology innovations to accelerate growth and strengthen its leadership in the online ecosystem.
See More
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- Defense Spending Increase: Defense spending is projected to rise by 7%, the slowest increase since 2021, although analysts believe the official figures may be understated, which could impact national security and military modernization efforts.
- Data Center Attack: Amazon's data center in Bahrain was targeted by Iran for supporting the U.S. military, with damage reported from a drone strike, potentially affecting Amazon's cloud computing operations in the Middle East in the short term.
- Global Tariff Increase: U.S. Treasury Secretary announced that global tariffs will rise from 10% to 15%, with expectations that tariff rates will return to pre-Supreme Court ruling levels by August, which will have profound implications for international trade and the cost structures of U.S. businesses.
See More
