Ten stocks lost their steam on Tuesday, recording significant losses, as investor sentiment was dampened by a series of negative catalysts that sparked sell-offs.
The stocks mirrored a lackluster performance on Wall Street, with major indices finishing mixed. The S&P 500 and the Nasdaq both lost 0.16 percent and 0.76 percent, respectively, while the Dow Jones was the sole gainer, up 0.44 percent.
In this article, we focus on the 10 worst performers on Tuesday and break down the reasons behind their decline.
To come up with the list, we focused exclusively on mid-cap stocks with at least $2 billion in market capitalization and 5 million shares in trading volume.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
10. Nebius Group NV (NASDAQ:NBIS)
Nebius Group dropped its share prices by 5.4 percent to close at $128.15 apiece as investors unloaded positions while in a wait-and-see mode for more catalysts to boost buying appetite.
Investor enthusiasm appeared to have already cooled down after pricing in news of an $18 billion cloud computing deal with technology giant Microsoft Corp.
Under the deal, Nebius Group NV (NASDAQ:NBIS) would deliver the capacity from its new data center in Vineland, New Jersey, with capital expenditures targeted to come from a combination of cash flow from the deal and the issuance of debt.
Last month, Nebius Group NV (NASDAQ:NBIS) successfully raised $1.15 billion in fresh funds through the issuance of convertible senior notes and its underwriters’ exercise of their option to purchase over 1.6 million shares for a total of $150 million.
Additionally, it may tap other financing options to enable significantly faster growth than originally planned.
9. Sandisk Corp. (NASDAQ:SNDK)
Sandisk saw its share prices decline by 5.44 percent on Tuesday to finish at $127.29 apiece as investors continued to be in a wait-and-see mode amid renewed trade tensions between the US and China.
Despite being a US-based company, Sandisk Corp. (NASDAQ:SNDK) is particularly at risk in the trade spat between the two countries, having its manufacturing operations located in China.
Additionally, the drop can be attributed to early profit-taking following the previous day’s 15 percent gain, thanks to Goldman Sachs’ whopping price target upgrade to $140 from $55 previously.
Goldman Sachs said it maintained its “buy” recommendation for Sandisk Corp. (NASDAQ:SNDK).
In other news, Sandisk Corp. (NASDAQ:SNDK) said it is scheduled to announce the results of its first quarter earnings performance for the fiscal year 2026 on November 6, 2025. A conference call will be held at 4:30 PM ET to elaborate on the results.
8. IonQ Inc. (NYSE:IONQ)
IonQ dropped its share prices by 5.53 percent on Tuesday to close at $77.55 apiece after successfully raising $2 billion from a share sale program that resulted in the dilution of existing stocks.
In a statement late last week, IonQ Inc. (NYSE:IONQ) said the program covered 16.5 million shares at a price of $93 apiece, pre-funded warrants to purchase more than 5 million shares for the same offer price, which represented a 20 percent premium over its closing price on October 9, 2025.
Additionally, IonQ Inc. (NYSE:IONQ) offered seven-year warrants to buy 43 million additional shares at $155 each if the stock goes that high by the maturity date.
“This investment provides an opportunity for the IonQ team to continue to grow and expand our ecosystem. IonQ is one of the only quantum companies in the world capable of delivering advanced computing, networking, and sensing solutions across every theatre—on the ground, in the air, and in space,” IonQ Inc. (NYSE:IONQ) Chairman and CEO Niccolo de Masi said.
“With our accelerated technology roadmap, world-renowned talent, and robust net cash position, we have strengthened our unique position. We believe this is the largest common-stock single-institutional investment in the history of the quantum industry. This $2 billion cash investment will facilitate our global growth and accelerate our quantum commercialization worldwide.”
7. YPF Sociedad Anonima (NYSE:YPF)
YPF Sociedad Anonima (NYSE:YPF) tumbled by 5.79 percent on Tuesday to end at $26.05 apiece as investors sold off positions amid lower oil prices, dented by renewed trade tensions between the US and China.
As of writing, Brent crude oil prices were down by 0.13 percent to $62.31 per barrel, while the West Texas Intermediate decreased by 0.10 percent to $58.64 per barrel, denting share prices of the listed oil and gas firm.
General investor sentiment was dampened by China’s announcement that it would look into Washington’s ongoing investigation into China’s growing dominance in world shipbuilding.
According to the ministry, Washington’s probe is threatening China’s national security and its shipping industry, and that it would retaliate if necessary.
In other developments, YPF Sociedad Anonima (NYSE:YPF) has set the release of its third-quarter earnings performance for November 10, during market hours. A conference call will be held to elaborate on the results.
6. Arista Networks Inc (NYSE:ANET)
Arista Networks extended its losing streak to a third straight day on Tuesday, shedding 5.87 percent to finish at $138.79 apiece as investor sentiment was dampened by Nvidia Corp.’s bagging of new deals with Oracle and Meta for their Ethernet networking architectures.
In a statement on Monday, Nvidia said that it was tapped by the two companies for its NVIDIA Spectrum-X Ethernet networking switches to help boost their AI data centers.
The said partnership posed a significant threat to Arista Networks Inc. (NYSE:ANET), given Nvidia Corp.’s growing dominance in the AI infrastructure, and with Meta being among Arista’s biggest clients to date.
Both Arista Networks Inc. (NYSE:ANET) and Nvidia target an emerging market for back-end Ethernet networking technology connecting clusters of AI servers in cloud-computing data centers.
Meta’s adoption of Nvidia’s Spectrum signaled that a portion of its networking expenditures could shift away from Arista Networks Inc (NYSE:ANET).
5. Grupo Financiero Galicia SA (NASDAQ:GGAL)
Grupo Financiero dropped its share prices by 5.98 percent on Tuesday to close at $32.21 apiece amid analyst expectations that the inflation rate in Argentina accelerated in September.
According to a poll conducted by Reuters, Argentina’s inflation is forecast to have increased from August, albeit the impact of the recent currency volatility was probably limited.
A higher inflation rate typically triggers interest rate hikes, which could further temper growth for the already struggling Argentine economy.
In other developments, Grupo Financiero Galicia SA (NASDAQ:GGAL) announced the appointment of Diego Hernan Rivas as the new chief executive officer (CEO) of its banking subsidiary, Banco de Galicia y Buenos Aires SA.
The leadership update came at a challenging time for Argentina’s economy amid a higher inflation rate, weak currency, and consumer confidence, among others.
Investors are now closely watching out for how Rivas would help steer the bank’s strategy amid the ongoing crisis.
Banco de Galicia is the Grupo Financiero Galicia SA’s (NASDAQ:GGAL) largest subsidiary, and is currently one of the largest banks operating in Argentina.
4. Turkcell Iletisim Hizmetleri AS (NYSE:TKC)
Turkcell Iletisim Hizmetleri AS (NYSE:TKC) saw its share prices drop by 6.26 percent on Tuesday to close at $5.54 apiece as investors sold off positions ahead of an upcoming tender for the development of 5G frequency in Turkey.
State-owned Information and Communication Technologies Authority (ICTA) is scheduled to hold a tender on Thursday, October 16, for mobile operators to offer 5G services beginning April 2026.
Part of the tender would include the renewal and extension of existing licenses that are scheduled to expire in 2029. Upon expiry, telco operators’ infrastructures and services will then be subject to a new authorization regime.
Turkcell Iletisim Hizmetleri AS (NYSE:TKC) last month expressed its interest in participating in the bidding, alongside its competitors, Turk Telekom and Vodafone.
According to Turkey’s transport and infrastructure minister, Abdulkadir Uraloglu, a total of 11 different frequency packages will be allocated to operators, which will be held at a minimum value of $2.125 billion for a total of 400 MHz of frequency in the 700 MHz and 3.5 GHz frequency bands.
3. Bitmine Immersion Technologies, Inc. (NYSEAmerican:BMNR)
Bitmine Immersion dropped its share prices by 6.91 percent on Tuesday to close at $52.92 apiece as investors resorted to profit-taking to take advantage of the previous day’s gains, buoyed by another round of acquisition of Ethereum tokens.
In a statement, Bitmine Immersion Technologies, Inc. (NYSEAmerican:BMNR) said it acquired over the past few days a total of 202,037 ETH tokens.
“The crypto liquidation over the past few days created a price decline in ETH, which BitMine took advantage of. We acquired 202,037 ETH tokens over the past few days, pushing our ETH holdings to over 3 million, or 2.5 percent of the supply of ETH,” said Bitmine Immersion Technologies, Inc. (NYSEAmerican:BMNR) Chairman Thomas Lee.
“We are now more than halfway towards our initial pursuit of the ‘alchemy of 5 percent’ of ETH,” he added.
Apart from Ethereum, Bitmine Immersion Technologies, Inc. (NYSEAmerican:BMNR) also holds 192 Bitcoins, $135 million stake in Eightco Holdings, and unencumbered cash amounting to $104 million.
Bitmine Immersion Technologies, Inc. (NYSEAmerican:BMNR) remains the largest Ethereum token holder, and the second largest cryptocurrency treasury holder next to Strategy Inc.
2. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Credo Technology fell by 13.44 percent on Tuesday to finish at $129.75 apiece as investors resorted to profit-taking following the previous day’s gains.
The share price dropped despite investment firm Stifel reiterating a “buy” recommendation for its stock at a price of $160 apiece.
According to Stifel, Credo Technology Group Holding Ltd. (NASDAQ:CRDO), its optimism was based on the company’s launch of its 800G HiWire ZeroFlap AECs to deliver highly reliable interconnect for artificial intelligence (AI) backend networks.
With improved reach and signal integrity, the HiWire ZF AECs deliver zero soft link flaps to support the lossless backend RDMA network that AI clusters are built on. The 800G AECs benefit from the newest advances in liquid cooling, allowing the 7-meter length to enable full host-to-switch connectivity in leading GPU clusters.
“Credo’s new HiWire ZeroFlap AECs enable a step function improvement in GPU cluster reliability by eliminating the soft link flaps frequently seen with legacy optics,” said Credo Technology Group Holding Ltd. (NASDAQ:CRDO) Head of AEC Product Ameet Suri.
“Further, when compared to legacy optics, Credo’s HiWire AECs offer power savings of up to 14W per link and cost savings of up to $1,000 per GPU,” he noted.
1. Astera Labs Inc. (NASDAQ:ALAB)
Astera Labs extended its losing streak to a third straight day on Tuesday, slashing 19.03 percent to close at $161.55 apiece amid cut-throat competition in the GPU market.
The drop followed Advanced Micro Devices’ partnership with Oracle for the deployment of 50,000 GPUs beginning in the third quarter of 2026, and expanding in 2027 onwards.
According to AMD, the partnership was aimed at capturing the growing demand for large-scale AI capacity as next-generation AI models outgrow the limits of current AI clusters.
The partnership was feared to potentially reduce demand for products by Astera Labs Inc. (NASDAQ:ALAB).
In other news, Astera Labs Inc. (NASDAQ:ALAB) announced on Tuesday that it joined forces with Arm Total Design for the development of chiplet solutions that meet the growing demand for custom AI infrastructure.
Chiplet architectures enable AI platform developers to combine diverse processing units—including Arm compute subsystems alongside memory, networking, and acceleration components—into unified systems optimized for different functions.
As a key design services partner in Arm Total Design, Astera Labs Inc. (NASDAQ:ALAB) will provide multi-protocol chiplet capabilities through its Intelligent Connectivity Platform, offering comprehensive PCIe, Ethernet, CXL, and UALink connectivity solutions that enable customers to build custom AI infrastructure with validated, interoperable connectivity from day one.
While we acknowledge the potential of ALAB 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 ALAB and that has 100x upside potential, check out our report about this cheapest AI stock.
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