Tech Weekly: Tech Selloff Snaps Nasdaq's Three Week Winning Streak

This week's tech sector performance

Wall Street ended higher on Monday (June 1) on hopes of US-Iran peace negotiations.

Tech shares boosted the Nasdaq Composite (INDEXNASDAQ:.IXIC) to another record high close following NVIDIA (NASDAQ:NVDA) unveiling of a new chip that puts ⁠artificial intelligence (AI) capabilities directly into personal computers, the result of a three-year collaborative effort with Microsoft (NASDAQ:MSFT).

Chip stocks saw a mixed performance, while shares of software companies rallied on Nvidia CEO Jensen Huang’s comments that AI would use software tools instead of replacing them.

On Tuesday (June 2), indices on both sides of the border ended higher, with US tech stocks benefiting from strong results from Hewlett Packard Enterprise (NYSE:HPE) and a funding commitment from Google (NASDAQ:GOOGL); however, escalating tension in the Middle East caused stocks to pull back on Wednesday (June 3), with financials and tech dragging down US indices, although semiconductor stocks continued to outperform.

New tariffs of up ⁠to 12.5 percent on imports from 60 economies proposed by the Trump administration also weighed on investor sentiment on Wednesday.

Broadcom's (NASDAQ:AVGO) earnings were on investors’ radars early in the week, but the S&P 500 (INDEXSP:.INX) and Nasdaq both dropped at Thursday’s open (June 4) after the company’s quarterly results disappointed investors. Other chipmakers also fell in tandem.

"The market's reaction underscores the extremely demanding environment currently dominating the technology sector," Simon-Peter Massabni, head of business development at XS.com, wrote in a note sent to INN.

"In previous cycles, exceeding revenue and earnings expectations was enough to trigger significant stock appreciation. Today, companies with substantial exposure to artificial intelligence face a different reality: the market demands not only outstanding results but also increasingly ambitious growth projections."

While the Nasdaq ended lower, the S&P saw marginal gains after the House of Representatives passed a war-powers resolution in an attempt to block the Trump administration from continuing the war in Iran.

The tech slump carried into Friday (June 5), with the S&P nearly breaking its nine-week winning streak after a surprisingly strong jobs report boosted expectations of an interest rate hike later this year. The index closed 0.02 percent higher, while the Nasdaq saw a loss of 4.79 percent, its first in three weeks.

3 tech stocks moving markets this week

This week's top tech stock movers, according to TradingView data, were:

1. Marvell Technology (NASDAQ:MRVL)

Marvelll Technology saw its stock price rise 33.66 percent this week.

2. Fortinet (NASDAQ:FTNT)

Security company Fortinet saw a 10.95 percent improvement.

3. Axon Enterprise (NASDAQ:AXON)

Public safety technology company Axon Enterprise rose 10.23 percent.

Top tech news of the week

• Evan Solomon, Canada’s minister of AI and digital innovation, launched a national AI strategy on Thursday, replacing former Prime Minister Justin Trudeau’s Pan-Canadian AI Strategy. The report was highly anticipated, with plans first announced in December 2025. Earlier in the week, Google’s chief economist, Fabien Curto Millet, said that Canada won't be able to achieve its goal of becoming the fastest-growing economy in the G7 without adopting AI. The new plan focuses on ethical innovation and online child safety with the aim of boosting adoption, improving trust and supporting domestic firms; however, critics argue it lacks specific regulations and privacy safeguards. Additionally, some groups say it fails to address copyright compensation for creators and has no plan for how AI adoption will impact employment. A C$500 million fund will also be dedicated to the sector.

• Anthropic, the AI company behind Claude, filed confidential initial public offering (IPO) papers with the US Securities and Exchange Commission on Monday. Also this week, Anthropic said it has quadrupled the number of companies granted access to its Claude Mythos model for cybersecurity testing under its Project Glasswing initiative, adding 150 new partners across more than 15 countries, bringing the total number of organizations to around 200. Canada is now part of Anthropic’s Mythos AI preview program, and the EU’s cyber agency, ENISA, was also granted access.

• Microsoft unveiled the Majorana 2, an update to its quantum computing chip, on Tuesday at its Build developer conference in San Francisco. The qubits in the new chip last longer than 20 seconds, compared to 12 milliseconds in previous iterations. “Based on this rapid progress, we are accelerating our roadmap to a scalable, practical quantum computer. We have cut our timeline in half and now aim to reach this target by 2029,” said Chetan Nayak, technical fellow at Microsoft.

• In addition to that, Microsoft introduced its first advanced reasoning AI model, MAI-Thinking-1, along with new tools like Project Solara and the ASSERT framework.

• Speaking at Taipei’s COMPUTEX conference alongside Marvell Technology (NASDAQ:MRVL) CEO Matt Murphy, NVIDIA's Jensen Huang predicted that the semiconductor and networking company will be the next business to hit a US$1 trillion valuation, calling Marvell’s chips “essential” to data centers. Huang’s comments sent shares of Marvell up nearly 15 percent on Tuesday. Its weekly gain was 33.52 percent.

• In other NVIDIA news, the AI giant said it has acquired Kumo AI, a five year old startup that sells predictive AI software to enterprises, and announced a partnership with Siemens (ETR:SIE,OTCPL:SMAWF) and energy storage company Fluence Energy (NASDAQ:FLNC) to provide battery systems for data center designs. Fluence’s share price soared on the announcement.

• US President Donald Trump signed an executive order on Tuesday asking AI companies to voluntarily share frontier models with the government for a 30 day pre-release review to assess cybersecurity and national security risks. An earlier draft of the executive order had proposed a 90 day mandatory review. Days later, OpenAI’s Sam Altman weighed in, saying the review period should be mandatory, with the Department of Commerce's Center for AI Standards and Innovation doing the evaluating instead of the Department of Defense's National Security Agency.

• Elon Musk initiated the SpaceX investor roadshow this Thursday, following the establishment of a US$135 price target on Monday. Additionally, SpaceX is reportedly in talks to secure IPO base fees under 0.75 percent for its assisting banks, a significant reduction from the standard 4 to 7 percent.

• SK Group Chair Chey Tae-won said SK Hynix (KRX:000660,OTCHXSCL:PL) plans to double its double wafer production capacity for memory chips within five years. The firm's capacity plan was announced at COMPUTEX on Tuesday. Chey said the AI-driven memory shortage could persist until 2030.

• Shopify (TSX:SHOP,NASDAQ:SHOP) said on Tuesday that it will expand its share buyback authorization by US$3 billion to a total authorization of US$5 billion.

• During an annual shareholders’ meeting that took place in Hsinchu, Taiwan, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) CEO C.C. Wei told attendees that the company’s global chip supply will fall short of demand for years to come.

• London-based robotics startup Morph exited stealth mode on Tuesday. The company focuses on the development of “physically intelligent” soft robotic cells.

• Google said it is raising US$80 billion in equity offerings to support its AI expansion.

• Quantum computing startup Quantinuum (NASDAQ:QNT) made its trading debut on Thursday, seeing marginal gains after raising US$1.68 billion in an upsized IPO.

• Data center developer Switch is said to be in talks to raise billions of dollars at a valuation of at least US$50 billion. People familiar with the matter told the Information that Brookfield Asset Management (TSX:BAM,NYSE:BAM), KKR (NYSE:KKR) and other private equity and institutional investors may invest.

• Jane Street is reportedly planning to build and finance its own data center.

• The Wall Street Journal said the US federal government is exploring taking equity stakes in AI companies as “a way to more broadly distribute the economic benefits of AI to the public.”

Tech stock earnings

Hewlett Packard Enterprise (NYSE:HPE)

Hewlett-Packard exceeded revenue expectations on Monday and said it expects to hit its long-term financial goals two years earlier than previously planned, confirming to investors that AI infrastructure demand is arriving at a rapid pace. The market sent the stock sharply higher as the company also raised its full-year outlook. HPE closed 14.44 percent higher for the week.

Palo Alto Networks (NASDAQ:PANW)

Palo Alto’s Q3 earnings beat expectations on Tuesday, and the company raised its outlook, citing continued strong demand for AI cybersecurity. The reaction from the market was an after-hours surge followed by a sell-off.

Broadcom (NASDAQ:AVGO)

Broadcom reported weaker-than-expected revenue in its fiscal Q2 on Wednesday, and maintained its 2027 fiscal year outlook of US$100 billion in AI chip revenue. The read disappointed investors, who sent shares down in extended trading. Broadcom closed the week 10.65 percent lower.

CrowdStrike (NASDAQ:CRWD)

Also on Wednesday, CrowdStrike beat earnings expectations and raised its annual recurring revenue outlook, but the beat was narrow and well below previous quarters. A sell-off ensued, but the company saw a 0.5 percent weekly gain.

Tech ETF performance

Tech exchange-traded funds (ETFs) track baskets of major tech stocks, meaning their performance helps investors gauge the overall performance of the niches they cover.

This week, the iShares Semiconductor ETF (NASDAQ:SOXX) pulled back by 3.02 percent, while the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ) lost 2.86 percent.

The VanEck Semiconductor ETF (NASDAQ:SMH) lost by 3.49 percent.

Tech news to watch next week

Next week features several key events, starting on Monday (June 8) with the US New York Fed release of one-year inflation expectations. Today’s jobs report adds a fresh labor-market read.

On Wednesday (June 10), the focus shifts to the Bank of Canada policy announcement and subsequent press conference, alongside Oracle’s quarterly earnings report.

Finally, the week concludes on Friday (June 12) with the long-awaited SpaceX initial public offering.