The US tech sector shows a volatile performance in April 2025 with some companies experiencing strong daily gains, while mixed quarterly reports and trade policy risks unsettle investors.
Daily Performances and Short-Term Trends
On April 23, 2025, Intuitive Surgical (+9.19 %), MongoDB (+7.62 %), and Palantir (+7.41 %) saw the strongest gains in the US Tech 100. However, these abrupt spikes contrast with the monthly losses of certain stocks: MongoDB, for instance, lost over 22% in the last four weeks. Marvell Technology (+7.25 %) demonstrates similar discrepancies between daily and monthly performance.
Fundamental Valuation and Long-Term Risks
Analysts expect selected growth stocks to continue seeing high revenue increases (up to +70% p.a.), but the ongoing Trumpian trade policy particularly burdens export-dependent tech companies like Nvidia. Nvidia’s recent profit warning triggered a Nasdaq drop of over 3% on April 16, 2025. The “Malificent 7” – presumably Big Tech stocks – significantly contributed to the year-start correction, with their valuation premium compared to the S&P 500 sinking to a two-year low.
Mixed Quarterly Figures as Drivers
While some companies like Intuitive Surgical benefit short-term from positive operational developments, others reveal weaknesses in forecast reliability. The discrepancy between robust long-term growth (e.g., expected EPS increases of +54% for an anonymized stock) and short-term political and macroeconomic uncertainties shapes investor behavior: bargain hunters leverage the corrections for entry points, while institutional investors increasingly opt for diversification.
Implications for Investors
- Selective Stock-Picking: High individual stock volatility favors active trading strategies (example: MongoDB vs. Palantir)
- Trade Policy Hedging: Trump’s tariff announcements require increased attention to supply chain risks (case study Nvidia-China)
- Valuation Discipline: Despite more moderate valuations, the tech sector remains vulnerable to further interest rate volatility or downward earnings revisions
The current developments highlight the need for a differentiated analysis of corporate fundamental data against the backdrop of geopolitical conditions.