Ten stocks kicked off the trading week slashing double-digit gains, outperforming the drop of the broader indices, amid selling pressure in the technology sector, still dampened by concerns about an AI bubble.
On Wall Street, the Nasdaq led the drop, down 0.59 percent, followed by the S&P 500, declining 0.16 percent, and the Dow Jones, down 0.09 percent.
In this article, we spotlight the names of the 10 biggest losers and break down the reasons behind their drop.
To come up with the list, we focused on the stocks with a $2 billion market capitalization and 5 million shares in trading volume.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
10. AST SpaceMobile (NASDAQ:ASTS)
AST SpaceMobile snapped a two-day rally on Monday, shedding 11.6 percent to close at $67.81 apiece as investors soured on the delay of its next-generation satellite launch.
Supposedly set for December 15 at the Satish Dhawan Space Center in India, AST SpaceMobile (NASDAQ:ASTS) said that BlueBird 6 takeoff has been pushed back to Sunday, December 21.
Investors took the news negatively on concerns about potential execution risks and the impact of further setbacks on the company’s commercialization plans and near-term revenue visibility.
According to AST SpaceMobile (NASDAQ:ASTS), the BlueBird 6 would feature the largest commercial phased array in low Earth orbit at nearly 2,400 square feet, representing a 3.5 times increase in size over the first to fifth generations, and supports 10 times the data capacity. It is targeted to enable ubiquitous cellular broadband coverage directly to everyday smartphones from space.
In line with the launch, AST SpaceMobile Inc. (NASDAQ:ASTS) said that it would also expand its manufacturing sites in Texas and Florida in a bid to ramp up the production of BlueBird 6.
Apart from the BlueBird 6 launch, the company said that it targets to make five launches beginning in December until March 2026.
9. Ondas Holdings Inc. (NASDAQ:ONDS)
Ondas Holdings fell by 12.11 percent on Monday to close at $7.69 apiece as investors unloaded portfolios following the resignation of one of its board members, effective immediately.
In a regulatory filing on Friday, Ondas Holdings Inc. (NASDAQ:ONDS) said that Ron Stern, who was appointed director and only joined the board of directors in January this year, stepped down from his post effective on Friday, December 12.
Investors took the news in a negative light despite Ondas Holdings Inc.’s (NASDAQ:ONDS) announcement that the resignation was not a result of any company disagreement.
In connection with the resignation, the Directorship Agreement dated January 6 has also been terminated.
Stern’s resignation followed his disposal of all his 850,000 shares in the company on November 26 at a price of $7.9123 for a total of $6.7 million.
In other news, Ondas Holdings Inc. (NASDAQ:ONDS) last week announced its intention to invest $11 million in Drone Fight Group, a Ukrainian developer of advanced unmanned aerial systems, through its strategic advisory and investment platform, Ondas Capital.
DFG is a fast-scaling innovator in high-performance unmanned systems that have been forged and refined through intense combat in Ukraine. DFG’s platforms include strike-optimized FPV systems, ISR drones, autonomous mission technologies, and cutting-edge drone simulators.
8. USA Rare Earth, Inc. (NASDAQ:USAR)
USA Rare Earth dropped its share prices by 12.73 percent on Monday to finish at $14.87 apiece, mirroring the drop in the industry and the broader market, after the Trump administration selected a non-US-based firm as a partner to ramp up zinc production in the US.
According to Reuters, the Trump administration, through a joint venture company it formed with US-based strategic investors including JPMorgan, acquired a 10 percent stake in Korea Zinc for $2 billion, as well as a 40 percent ownership in the latter’s $7.4 billion mineral smelter in Tennessee.
The site is said to be capable of producing 540,000 tons of zinc minerals annually.
USA Rare Earth, Inc. (NASDAQ:USAR) investors took the news in a negative light, especially as the latter has been trying for months to lure the government’s backing through a potential investment.
In October this year, it can be recalled that USA Rare Earth, Inc. (NASDAQ:USAR) confirmed that it was in talks and close communications with the US government for a potential partnership, following the latter’s investment support in its counterparts, namely Lithium Americas and MP Materials.
The investment forms part of its efforts to speed up the production and capture the growing demand of rare earth minerals in the US.
USA Rare Earth, Inc. (NASDAQ:USAR) is currently developing a mine site in Sierra Blanca, Texas, and a magnet production facility in Stillwater, Oklahoma.
7. Terawulf Inc. (NASDAQ:WULF)
Terawulf fell by 12.84 percent on Monday to close at $12.49 apiece, as investors took path from the decline in Bitcoin prices and renewed concerns about an AI bubble.
As of writing, the price of Bitcoin was down by 2.27 percent at $86,168 apiece, as traders appeared to have taken early profits ahead of the Christmas holiday.
Investor sentiment was further dragged down by fresh concerns about heavy spending on artificial intelligence, dragged by technology giant Oracle Corporation, which had raked in $108 billion in debt from its investments in AI.
Oracle’s scale of borrowing raised questions among investors about how quickly the technology giant would be able to recoup its investments, triggering a broader selloff that rippled through high-performance computing companies, including Terawulf Inc. (NASDAQ:WULF).
In other news, investors also continued to trim their positions amid the dilution impact of Terawulf Inc.’s (NASDAQ:WULF) mandatory conversion of preferred shares into common shares.
Under the terms, all convertible preferred shares of the company have been converted into 141.9483 common shares effective on December 9.
According to TeraWulf Inc. (NASDAQ:WULF) Chief Finance Officer Patrick Fleury, the mandatory conversion reinforces the company’s financial discipline and enables focus on growth moving forward.
“[This] announcement represents a key milestone on our journey to simplify TeraWulf’s capital structure going forward, supporting future growth while providing transparency to investors,” he said.
6. Cipher Mining Inc. (NASDAQ:CIFR)
Cipher Mining saw its share prices drop by 13.55 percent on Monday to close at $14.74 apiece as investors took path from the decline in Bitcoin prices and renewed concerns about an AI bubble.
Cipher Mining Inc. (NASDAQ:CIFR) declined alongside its peers, namely Terawulf, Hut 8, and CleanSpark, after Bitcoin, as of writing, shed 2.27 percent of its value at $86,168 apiece. Traders appeared to be locking in early profits ahead of the Christmas holiday.
Further dragging sentiment was renewed pessimism over the AI sector, dragged by news that Oracle Corporation—one of the largest AI players globally—raked in as much as $108 billion in debt to spend on the said industry.
The scale of borrowing sparked worries among investors about how quickly it would be able to recoup its investments, and the concerns created a ripple effect into high-performance computing firms, including Cipher Mining Inc. (NASDAQ:CIFR).
The decline was despite Canaccord Genuity’s reaffirmation of its “buy” recommendation and $27 price target on Cipher Mining Inc. (NASDAQ:CIFR). The figure marked an 83 percent upside potential from its latest closing price.
In other developments, Cipher Mining Inc. (NASDAQ:CIFR) announced plans to officially redeem its outstanding warrants for $0.01 apiece until 5 PM on December 26, 2025. The warrants are only exercisable on a cashless basis.
Any warrants that remained unexercised by the deadline will then be void and no longer exercisable.
5. Hut 8 Corp. (NASDAQ:HUT)
Hut 8 fell for a second day on Monday, slashing 14.21 percent to close at $35.44 apiece as investors trimmed their positions following the decline in Bitcoin prices.
As of writing, Bitcoin was down by 2.27 percent at $86,168, with traders appearing to be taking early profits ahead of the Christmas holiday. Hut 8 Corp. (NASDAQ:HUT) declined alongside its peers, namely Terawulf, Cipher Mining, and CleanSpark, following the news.
Additionally, Hut 8 Corp. (NASDAQ:HUT) was dented by an overall pessimism for the AI sector after renewed concerns about heavy investments spent on AI. Oracle Corp., for instance, saw its debt balloon to $108 billion amid its ramped-up spending on artificial intelligence, sparking concerns among investors about how quickly the technology giants would be able to recoup their billion-dollar investments in AI.
Hut 8 Corp. (NASDAQ:HUT) is originally a Bitcoin mining company that has slowly transitioned to high-performance computing and data center servicing.
In the third quarter of the year, Hut 8 Corp. (NASDAQ:HUT) said attributable net income surged by more than 7,600 percent to $50.1 million from only $647,000 in the same period last year.
Revenues jumped by 91 percent to $83.5 million from $43.7 million year-on-year, on the back of strong revenues from high-performance computing (HPC), at $70 million, or 410 percent higher than the $13.7 million year-on-year.
4. Fermi Inc. (NASDAQ:FRMI)
Fermi extended its losing streak to a fourth consecutive day on Monday, dropping 14.87 percent to close at $8.59 apiece as news that one of its major tenants pulled out from an earlier leasing agreement continued to dent investor sentiment.
In a regulatory filing last week, Fermi Inc. (NASDAQ:FRMI) said that one of its unnamed prospective tenants, which it inked a $150 million leasing agreement with from its 11 GW data center campus in Texas, decided to pull out of the agreement.
However, Fermi Inc. (NASDAQ:FRMI) said that it remains in discussions with other companies for potential leasing agreements.
In support of the development of the campus, Fermi Inc. (NASDAQ:FRMI) earlier this month inked a power supply agreement with Southwestern Public Service Company (SPS), a subsidiary of Xcel Energy, for the delivery of up to 200 MW of power capacity to the data center.
Initially, SPS would deliver 86 MW of power capacity beginning next month, eventually ramping up the delivery to 200 WM.
“This agreement is yet one more example of Fermi transforming intent into execution, with the strong commercial and technical support of our friends at Xcel Energy,” said Larry Kellerman, Chief Power Officer of Fermi America.
“Securing reliable and cost-effective power from Xcel Energy today and working together with them to grow our relationship over time is a key component of Fermi’s plans.”
For his part, Fermi Inc. (NASDAQ:FRMI) CEO Toby Neugebauer said that partnering with Xcel Energy helps demonstrate that reliable, large-scale energy for artificial intelligence can be developed on time and on budget.
3. CleanSpark, Inc. (NASDAQ:CLSK)
CleanSpark fell for a second day on Monday, shedding 15.07 percent to close at $11.91 apiece as investor sentiment was dampened by the drop in Bitcoin prices and fresh concerns about the artificial intelligence industry.
CleanSpark, Inc. (NASDAQ:CLSK) declined alongside its counterparts, namely Terawulf, Hut 8, and Cipher Mining, after Bitcoin fell below the $90,000 level on Monday from profit-taking ahead of the Christmas holiday.
Additionally, concerns lingered anew about the AI bubble, fueled by heavy investments in AI, with Oracle Corp. alone raking in $108 billion in debt to fund the sector.
The scale of borrowing worried investors about how quickly the technology giants, which have shelled out billions of dollars in artificial intelligence, would be able to earn their profits from the sector.
In other developments, CleanSpark, Inc. (NASDAQ:CLSK) announced earlier this month that it was able to produce 587 Bitcoins for the month of November, lower by 4 percent than the $612 Bitcoins in October this year.
The company said average daily Bitcoin production stood at 19.54, slower by 1 percent than the 19.75 average the month prior.
2. Applied Digital Corp. (NASDAQ:APLD)
Applied Digital nosedived for a fourth consecutive day on Monday, slashing 17.52 percent to close at $22.98 apiece as investors took path from a broader market pessimism amid fresh AI bubble worries.
The stock declined alongside its high-performance computing (HPC) counterparts, dragged down by increasing concerns about technology giants’ heavy spending on AI, particularly on how quickly they would be able to recoup their investments.
Last week alone, technology giant Oracle Corp. announced that its debt had ballooned to $108 billion, as it continues to ramp up its spending on AI.
Similarly, Applied Digital Corp. (NASDAQ:APLD) is spending heavily on AI, supported by a flurry of data center leasing deals with hyperscalers.
This year alone, Applied Digital Corp. (NASDAQ:APLD) entered into multiple credit facilities to raise billions of dollars to fund the development of its HPC campus pipelines.
1. ReNew Energy Global Plc (NASDAQ:RNW)
ReNew Energy nosedived by 27.15 percent on Monday to finish at $5.50 apiece as investors unloaded positions after Masdar, one of the largest renewable energy companies globally, pulled out from a $1 billion plan to take the former private.
In a statement over the weekend, Masdar said that it officially withdrew from a consortium that would have taken ReNew Energy Global Plc (NASDAQ:RNW) private.
As a result, ReNew Energy Global Plc (NASDAQ:RNW) said that the entire merger proposal would no longer push through.
The decision followed a year-long negotiation, which raised the supposed acquisition to $8.15 per share from the initial offer of $7.07 apiece.
Apart from Masdar, the consortium also included CPP Investments, ADIA (through Platinum Hawk), and ReNew’s own founder and CEO, Sumant Sinha.
ReNew Energy Global Plc (NASDAQ:RNW) has yet to announce its next steps following the withdrawal of the transaction.
While we acknowledge the potential of RNW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RNW and that has 100x upside potential, check out our report about this cheapest AI stock.
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