Which Stocks Are Crashing in Q1 2025: 15 Big Decliners and Why They Fell

Although the broader market has notched modest gains in early 2025—with the S&P 500 up by roughly 4% year-to-date and the Nasdaq around 2–3% higher—a handful of well-known stocks have suffered steep declines. This contrast shows how sector- or company-specific troubles can overshadow bullish index trends. Many of these plunges stem from issues such as unexpected competitive threats (particularly in AI), changing consumer behavior, regulatory or legal overhangs, or simple “sell the news” scenarios. Below, we examine 15 notable losers in Q1 2025, arranged by sector, exploring each stock’s underperformance, the reasons behind the downfall, and how investors and analysts are responding.

Technology & AI Sector

Nvidia (NVDA)

Nvidia tumbled around 17% in late January, triggered mainly by news of “DeepSeek,” a Chinese AI startup unveiling a low-cost model that rattled investor confidence in Nvidia’s high-end GPUs. The sudden one-day drop erased some $600 billion in market cap, far exceeding the S&P 500’s small dip at the time, and left NVDA trailing the Nasdaq’s mild positive Q1 return. Investors worried DeepSeek’s breakthrough might reduce future demand for Nvidia’s data center chips, while intensified U.S. export curbs to China also clouded the company’s outlook. Although CEO Jensen Huang downplayed the sell-off—arguing that any expansion in AI ultimately boosts GPU needs—analysts split between those viewing the panic as overblown and those believing a genuine competitive shift could slow Nvidia’s revenue growth. The stock’s subsequent partial rebound has not repaired the quarter’s double-digit damage, underscoring how quickly AI sentiment can flip when fresh rivals appear.

Advanced Micro Devices (AMD)

AMD’s stock fell about 8% in early February after releasing Q4 2024 results that, while strong overall, disappointed on AI/data center chip sales. This letdown overshadowed the broader market, where the S&P and Nasdaq barely moved. Investors had banked on AMD taking AI market share from Nvidia, so the shortfall—plus mention of emerging Chinese competitors—sparked a sell-off. CEO Lisa Su remained confident that AI breakthroughs, including DeepSeek, would, in the long run, generate greater demand for compute power, but near-term caution prevailed. Analysts still generally rate AMD favorably, pointing to its PC recovery and console chips, yet the Q1 slump highlights the risk of lofty expectations in an increasingly competitive AI hardware space.

IonQ (IONQ)

IonQ lost roughly 40%—one of the sharpest drops of the quarter—after having soared over 1800% the previous year on quantum computing euphoria. Once major tech leaders like Nvidia’s Huang and Meta’s Zuckerberg implied meaningful quantum adoption might be decades off, IonQ’s valuation came under severe scrutiny, triggering a swift crash that dwarfed the S&P 500’s mild rise. The company’s triple-digit revenue growth in 2024 no longer assuaged concerns that quantum hardware commercialization would remain distant. Analysts and retail traders who once championed IonQ quickly pivoted to caution, though some diehard bulls see the wreck as a chance to accumulate a genuine long-term quantum play.

C3.ai (AI)

C3.ai’s stock sank about 17% across two sessions in mid-January, mostly after a Sell-equivalent analyst downgrade warning of an overstretched valuation and an unproven sales pipeline. CEO Tom Siebel acknowledged the broader AI market had soared “over-enthusiastically,” further chilling investor sentiment. While the Nasdaq wavered only slightly, C3.ai’s outsized loss indicated how a single negative call can puncture an AI-driven rally, especially for companies yet to show solid recurring revenues. Some believers see the drop as a buying opportunity if C3.ai can land bigger enterprise deals, but Q1’s skid confirms that investors want proof of sustainable AI licensing growth before rewarding the stock again.

Broadcom (AVGO)

Broadcom slid around 7% when the late-January AI “mini-rout” spilled over to major semiconductor names. Although the company is more diversified than Nvidia or AMD, it wasn’t immune to fears that hype around AI might have peaked or that new players like DeepSeek might moderate data-center hardware orders. This decline contrasted with a flat or slightly positive Nasdaq over the same span, reflecting how even multi-faceted chip suppliers can be dragged down by shifting AI sentiment. Most analysts remain positive on Broadcom’s underlying fundamentals—citing networking chips, enterprise software, and a pending VMware deal—but near-term caution has curbed momentum and left the stock underperforming in Q1.

Marvell Technology (MRVL)

Marvell lost around 9% after the same AI-driven negative news cycle. Having more than doubled in 2024 on hopes of capturing AI infrastructure demand, the stock felt the brunt of any suggestion that data center budgets might slow. Its slump in late January dwarfed the Philadelphia Semiconductor Index’s near-flat performance, highlighting that smaller, high‑beta chip names remain vulnerable to fast sentiment turns. Analysts remain moderately upbeat on Marvell’s 5G and cloud networking segments, yet question whether it can sustain AI hype without seeing consistent large-scale orders from big cloud customers. The Q1 pullback thus reflects the broader recalibration happening with mid-tier AI suppliers.

PayPal (PYPL)

PayPal plunged roughly 10% post-earnings in early February, overshadowing an otherwise stable day for the broader market. The disappointment stemmed from unbranded checkout (Braintree) revenue growth falling short, amid fiercer competition from rivals like Stripe and Adyen. The subdued outlook frustrated investors hoping for a more robust rebound, leaving PYPL underperforming both financial and tech indices. Sentiment turned mixed, with some analysts believing the stock’s valuation now factors in the slowdown, while others see a shrinking moat in merchant processing. PayPal’s near-term pivot—focusing on cost efficiency and specialized services—didn’t inspire immediate enthusiasm, pushing the stock down markedly in a rising S&P environment.

Consumer & Automotive Sector

Tesla (TSLA)

Tesla shed about 5% on February 3 following renewed talk of auto-part tariffs affecting Mexico and Canada, overshadowing solid Q4 2024 earnings. The immediate threat of higher component costs fed into concerns around Tesla’s margins, already under pressure from global price cuts aimed at spurring demand in an increasingly crowded EV market. The day’s steep drop far exceeded the broader market’s minor move, leaving Tesla trailing the Nasdaq for Q1. Analysts remain torn: some keep bullish price targets for the long term, citing Tesla’s brand loyalty and technology lead, while others worry about near-term margin erosion, slower Chinese and European deliveries, and overhanging tariff threats. The quarter’s decline reflects these conflicting signals.

Abercrombie & Fitch (ANF)

Abercrombie surprised investors by plunging 19% in mid-January, ironically on the same day it raised Q4 guidance. The stock had soared 250% in 2024, so the moderate improvement disappointed traders expecting a far bigger “beat,” prompting heavy profit-taking. The S&P 500 was flat that day, underscoring how purely sentiment-driven ANF’s move was. Analysts remain upbeat on the brand’s turnaround—Jefferies even called the drop a buy opportunity—but the abrupt one-day loss underscores the peril of elevated expectations in the retail sector. With final Q4 earnings still pending, many wonder if further details will either confirm the brand’s momentum or reveal hidden soft spots.

Constellation Brands (STZ)

Beer, wine, and spirits giant Constellation fell around 18% in early January after its quarterly results disappointed and full-year guidance was cut. Investors seized on the slowdown in beer volume growth—once a bright spot—and the ongoing slump in wine and spirits, collectively raising doubts about Constellation’s ability to maintain high earnings. This decline contrasted with consumer staples’ relatively stable performance. Several analysts lowered price targets, wary that Constellation’s profitability depends heavily on accelerating Corona/Modelo expansions, which might be peaking. Some contrarian observers argue the stock is oversold, but the quarter’s abrupt drop underscores how guidance cuts can overshadow a once-steady growth story.

General Motors (GM)

GM’s 9% plunge near the end of January followed robust Q4 earnings overshadowed by the CEO’s caution that auto-part tariffs could upend the company’s 2025 goals. The instant reaction dwarfed the S&P 500’s flat trade that day, highlighting how highly sensitive GM remains to trade policy changes. Despite strong North American profits, worries about supply chain disruptions, raw material inflation, and uncertain EV battery costs left GM trailing the index in Q1. Many analysts still see GM as undervalued, but near-term sentiment dipped as the brand’s favorable forecast got tangled in macro risk from potential new tariffs and global cost headwinds.

Utilities & Energy Sector

Edison International (EIX)

EIX sank a massive 32% after Southern California wildfires resurrected the fear that its equipment might have ignited multiple blazes. Investors recalled PG&E’s past liabilities and worried EIX could face multi-billion-dollar claims under California’s inverse condemnation laws, possibly threatening solvency. This meltdown dwarfed the utility sector’s stable showing in Q1, with analysts swiftly downgrading the stock. Edison’s repeated attempts to reassure markets about improved safety measures did little to calm panic selling. Until official investigations end and liability is clarified, EIX remains one of the hardest-hit S&P 500 names in Q1.

PG&E (PCG)

PG&E, the Northern California utility once bankrupt over catastrophic fires, dropped more than 22% during January. Though the largest new fires hit SoCal, any mention of California wildfires spooks PCG holders. Investors recalled how past events forced PG&E’s bankruptcy in 2019, so the stock trades at a discount to peers, overshadowed by the specter of more fire-caused liabilities. Some media argued the sell-off was an overreaction since PG&E wasn’t implicated in the major January blazes, but many remain wary. Until the state sees a period free of severe fire controversies, PG&E’s battered share price may reflect persistent risk aversion.

Healthcare Sector

Moderna (MRNA)

Moderna declined roughly 17% in one day when it cut its 2025 revenue forecast by $1 billion, surprising a market that had expected the COVID-19 vaccine momentum to help near-term sales. The announcement implied that demand for boosters and new combined shots (e.g., COVID/Flu) would be “back-loaded” or smaller than hoped, forcing the company to undertake $1 billion in cost cuts. Investors reeled from the realization that Moderna’s big pandemic-era gains were fading faster than planned, leaving the stock significantly below the broader health sector’s flattish Q1 results. Analysts remain torn between praising Moderna’s robust mRNA pipeline and lamenting a near-term vacuum in revenue, resulting in a cautionary mood about the stock’s immediate prospects.

Real Estate Sector

SL Green (SLG)

Manhattan office landlord SL Green has dropped about 12% in Q1 as high vacancies, stubborn remote/hybrid work trends, and interest rate pressures compound the REIT’s struggles. An equity offering in late 2024 also diluted existing shareholders, sending the stock down 20% from that point, with about half of those losses occurring during Q1. Analysts see SL Green as a microcosm of big-city office REIT woes: with occupancy slow to recover, plus higher financing costs, sentiment remains negative. Although some contrarians call the current price undervalued if offices eventually rebound, the first quarter’s slump underscores how the commercial property sector is still grappling with structural changes to workplace habits and uncertain monetary policy.

These 15 underperformers, each down significantly while the S&P 500 rose about 4% in Q1 2025, highlight the pitfalls of overreliance on exuberant narratives—be they AI, quantum computing, pandemic-driven sales, or brand turnarounds. Factors such as new competition (DeepSeek rattling Nvidia and AMD), consumer or investor “sell the news” (Abercrombie & Fitch), macro disruptions (tariffs hitting GM and Tesla), liability shocks (California wildfires for Edison and PG&E), or disappointing post-pandemic forecasts (Moderna) can swiftly erase gains even during a rising market. Some analysts see value opportunities in these dips—pointing to Nvidia’s entrenched AI leadership, GM’s strong fundamentals, or IonQ’s long-run potential. Yet the immediate sentiment is cautionary, and each stock’s Q1 plunge underscores that despite a generally stable or bullish macro setting, individual companies remain vulnerable to shocks, competition, and shifting investor psychology.

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