In this article, we deep dive into the 5 stocks investors that investors are dumping. For a deeper discussion and an extended list, please see 10 Stocks Investors Are Walking Away From.
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5. Almonty Industries Inc. (NASDAQ:ALM)
Almonty Industries fell by 9.6 percent on Monday to end at $15.02 apiece, as investor sentiment was dragged by concerns about the economic impact over the prolonged US-Iran war.
The stock fell alongside key players and industries riding the artificial intelligence wave, as investors unloaded portfolios for safety while waiting for developments between the US and Iran.
It can be learned that the two nations over the weekend launched fresh missile strikes, weeks after trying to negotiate for a peace deal.
However, President Donald Trump over the weekend said that the US has reinstated an Iranian blockade in the Strait of Hormuz, and later commanded the launch of missile strikes.
Investors turned pessimistic amid fears over the further economic impact of the prolonged war.
In other news, Almonty Industries Inc. (NASDAQ:ALM) announced earlier this month that it has officially started the processing operations of its Sangdong tungsten mine.
Almonty Industries Inc. (NASDAQ:ALM) said that it exited the first quarter of the year with approximately 120,000 tons of ore stockpiled at an average grade of 0.24 percent tungsten trioxide.
In the second quarter, the company mined an additional approximately 19,700 tons of development ore at an average grade of 0.35 percent tungsten trioxide, while advancing 214.6 meters of underground development, primarily along the Main Vein.
Together, this brings total stockpiled ore to approximately 139,700 tons at a blended grade of approximately 0.25 percent tungsten trioxide ahead of the plant’s commissioning.
4. AXT Inc. (NASDAQ:AXTI)
AXT Inc. fell for a second day on Tuesday, losing 11.80 percent to end at $50.46 apiece, as investor sentiment was dampened by a broader market pessimism triggered by the escalating tensions between the US and Iran.
Additionally, investors were repositioning portfolios ahead of the results of its second quarter earnings performance after market close on July 30, 2026.
The company will host a conference call to elaborate on the results.
Last week, AXT Inc. (NASDAQ:AXTI) announced that its subsidiary, Beijing Tongmei Xtal Technology Co. Ltd., has withdrawn its plan to list publicly on the Shanghai Stock Exchange and instead, conduct an initial public offering on the Hong Kong Stock Exchange.
AXT Inc. (NASDAQ:AXTI) believed that its subsidiary’s Hong Kong listing would “emphasize its updated business plan focusing on the development of its indium phosphide business to address the growing demand for InP substrates used in high-speed optical data transmission and artificial intelligence data center applications.
“Given the increase in demand for its InP wafer substrates used for high-speed optical data transmission in data centers employing artificial intelligence, the company believes that the Hong Kong Stock Exchange is an attractive market to list Tongmei’s shares permitting a broader potential base of institutional and retail investors in its anticipated IPO,” AXT Inc. (NASDAQ:AXTI) said.
3. Astera Labs Inc. (NASDAQ:ALAB)
Astera Labs fell for a second day on Tuesday, losing 12.33 percent to finish at $362.05 apiece, as investor sentiment was primarily dampened by the re-escalating tensions between the US and Iran.
In a social media post over the weekend, President Donald Trump announced that it reinstated a blockade on Iran in the Strait of Hormuz.
The announcement heavily dampened investor sentiment despite Trump’s clarification that cargoes from other countries will be able to pass through the Strait freely and safely.
Wall Street’s three major indices all finished in the red, led by the Nasdaq, down 1.55 percent, followed by the S&P 500, losing 0.79 percent, and the Dow Jones, shedding 0.26 percent.
Meanwhile, the decline can also be attributed to profit-taking following Astera Labs Inc.’s (NASDAQ:ALAB) surge late last month over its addition in the Nasdaq-100 index effective on June 22.
Astera Labs Inc. (NASDAQ:ALAB) is set to announce the results of its earnings performance in the second quarter after market close on August 4, 2026. A conference call will be held to elaborate on the results.
For the period, the company is targeting to generate revenues between $355 million and $365 million, or an implied growth of 15 to 18 percent from the $308.4 million posted in the same period last year.
2. AppLovin Corp. (NASDAQ:APP)
AppLovin extended its losing streak to a 5th consecutive day on Monday, slashing 12.65 percent to end at $442.85 apiece, as investors resumed selling positions amid a pessimistic wider market triggered by the re-escalating tensions between the US and Iran.
The stock fell alongside the broader market, with the Nasdaq down the most, by 1.55 percent. The S&P 500 followed with a 0.79 percent decline, while the Dow Jones was down by 0.26 percent.
In just the past five trading days, AppLovin Corp. (NASDAQ:APP) has already seen its stock price decline by 18.56 percent.
In other news, AppLovin Corp. (NASDAQ:APP) is scheduled to announce the results of its earnings performance in the second quarter of the year on August 5, 2026. A conference call will be held to elaborate on the results.
For the period, the company is targeting to rake in revenues between $1.915 billion and $1.945 billion, or an implied growth of 52 percent to 54 percent from the $1.259 billion posted in the same period last year.
Adjusted EBITDA is also expected at $1.615 billion to $1.645 billion, or growth of 58.6 percent to 61.6 percent from the $1.018 billion year-on-year.
1. Sandisk Corp. (NASDAQ:SNDK)
Sandisk snapped a three-day winning streak on Tuesday, slashing 12.63 percent of its value to close at $1,673.97 apiece, after a heavy selloff in the wider market, thanks to the re-escalating tensions between the US and Iran.
Investors appeared to have cashed in on gains on high-growth industries, such as semiconductor, while parking funds to mitigate risks, after President Donald Trump recently announced the reinstatement of what he called an “Iranian blockade” in the Strait of Hormuz.
The announcement heavily dampened investor sentiment despite Trump’s clarification that cargoes from other countries will be able to pass through the Straight freely and safely. Wall Street’s three major indices all finished in the red, led by the Nasdaq, down 1.55 percent, followed by the S&P 500, losing 0.79 percent, and the Dow Jones, shedding 0.26 percent.
For Sandisk Corp. (NASDAQ:SNDK), the selloff was primarily triggered by profit-taking, having already soared by 5,442 percent in just the past 52 weeks, and even with Monday’s selloff, the stock remained up by 605.19 percent year-to-date.
In other news, Sandisk Corp. (NASDAQ:SNDK) is set to announce the results of its earnings performance for the fourth quarter of fiscal year 2026 after market close on August 5, 2026. A conference call will be held to elaborate on the results.
For the period, Sandisk Corp. (NASDAQ:SNDK) is targeting to report revenues between $7.75 billion to $8.25 billion, or an implied growth of 308 percent to 334 percent from the $1.9 billion posted in the same period last year.
While we acknowledge the potential of SNDK 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 SNDK and that has 100x upside potential, check out our report about the cheapest AI stock.
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