Stock Markets February 26, 2026

Broadcom, Nvidia Drag Big Caps Lower as Select Names Rally Across Market Caps

Chip-related headlines weigh on large technology stocks while select software, payments and consumer names post gains

By Priya Menon NVDA AVGO LRCX AMAT AMD
Broadcom, Nvidia Drag Big Caps Lower as Select Names Rally Across Market Caps
NVDA AVGO LRCX AMAT AMD

Equity trading on Thursday produced a mix of notable declines among large-cap technology and semiconductor firms and sharp advances in selected names ranging from quantum computing to small-cap consumer stocks. News items tied to chip supply and product shipments coincided with heavy selling in several mega-cap chipmakers, while earnings beats and revised guidance lifted a number of smaller issuers.

Key Points

  • Semiconductor and large-cap technology stocks led declines amid headlines that included a report of an AI model being withheld from U.S. chipmakers and Broadcom shipping a new 2nm custom compute chip.
  • Company-specific results and guidance moves drove sharp gains in select names - for example IonQ's revenue beat and raised 2026 outlook and Sezzle's raised profit guidance.
  • Volatility extended to mid- and small-cap stocks, with notable winners in payments and consumer names and steep losses among several industrials, healthcare and small-cap technology firms.

Markets moved unevenly on Thursday as headlines and company-specific reports drove significant intraday swings. Large-cap semiconductor and technology names registered meaningful losses, while some firms from the streaming, payments and consumer sectors climbed. Below are the most prominent movers grouped by market-cap tier.


Mega-Cap Movers (Market Cap: $200 billion and above)

Thursday trading saw several giants in chips and technology give back ground. Reuters reported that Deepseek withheld its latest AI model from U.S. chipmakers including Nvidia, and Nvidia (NVDA) fell 5.3% on the session. Broadcom-related news that it shipped its first 2nm custom compute chip on a 3.5D platform coincided with Avago Technologies (AVGO) sliding 5.89%. Other large-cap technology and semiconductor names recorded declines: Lam Research Corp (LRCX) -5.45%, Applied Materials Inc (AMAT) -5.16%, Advanced Micro Devices (AMD) -3.7%, Alibaba-exch (BABA) -3.57%, Intel Corp (INTC) -2.97%, Micron Technology (MU) -2.86%. Shares of Tesla Motors (TSLA) dropped 2.43% in the group. Not all mega-caps were lower; Netflix, Inc. (NFLX) rose 2.84%.


Large-Cap Stock Movers (Market Cap: $10-$200 billion)

At the large-cap level, a mix of strong gains and steep falls appeared. IonQ surged after reporting a revenue beat and raising its 2026 outlook, with dMY Technology Group III (IONQ) jumping 22.16%. Bentley Systems Inc (BSY) climbed 11.21%, and Viacom Cl B (PSKY) added 9.65%. On the downside, BeiGene (ONC) lost 9.51%, Credo Technology Holding (CRDO) fell 9.12%, and several mid-to-large healthcare and industrial names were lower: Universal Health Services (UHS) -10.68%, Donaldson Company Inc (DCI) -11.28%, Heico Corp (HEI) -11.18%. Storage and communications software names also retreated: Pure Storage Inc (PSTG) -12.3%, Zoom Video Communications (ZM) -13.87%.


Mid-Cap Stock Movers (Market Cap: $2-$10 billion)

Mid-cap activity included notable upside tied to guidance and quarterly results. Sezzle Inc PK (SEZL) climbed 29.41% after raising profit guidance. LeMaitre Vascular Inc (LMAT) rose 20.31%. Frontdoor (FTDR) beat Q4 estimates yet issued guidance below expectations and still finished up 16.31% on the day. Warby Parker (WRBY) added 15.07%. Significant declines were seen among other mid-caps: Walker & Dunlop Inc (WD) -15.97%, Chemed Corp (CHE) -15.99%, Fs Investmt (FSK) -15.5%, Shift4 Payments Inc (FOUR) -15.22%, ACM Research Inc (ACMR) -19.19% after shipping cleaning systems to a Singapore foundry, and B Riley Principal Merger II (EOSE) -36.66%.


Small-Cap Stock Movers (Market Cap: $300 million-$2 billion)

Smaller-cap names produced some of the largest percentage moves. Longview Acquisition (BFLY) gained 40.48%, Rackspace Technology Inc (RXT) rose 37.41%, and Ibotta (IBTA) added 33.05%. Krispy Kreme (DNUT) surged 31.27% following an earnings beat and commentary on turnaround progress. Other strong performers included AEABridges Impact (LVWR) +27.67% and GigaCloud Technology (GCT) +28.98%. Conversely, a number of small caps plunged: Braiin (BRAI) -29.17%, UniQure NV (QURE) -32.77%, Energy Recovery (ERII) -33.13%, and Array Technologies Inc (ARRY) -34.77%.


Thursday's session illustrates how headline news tied to AI model access, chip shipments and company-specific earnings or guidance updates can produce broad sector moves, particularly within semiconductors and technology, but also in payments, consumer and healthcare-related names. Market participants met a mix of fundamental updates with rapid re-pricing across market-cap tiers.

Risks

  • Headline-driven shifts - such as reports of restricted AI model access to U.S. chipmakers - create downside risk for semiconductor and related technology stocks.
  • Corporate guidance can diverge from quarterly beats - illustrated by Frontdoor which beat Q4 estimates but issued guidance below expectations, posing uncertainty for investor forward expectations in home services and software-related industries.
  • High percentage moves in mid- and small-cap names underscore elevated volatility risk for investors concentrated in those segments of the market.

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