AI stocks including Nvidia, Intel, Arm Holdings, and Marvell Technology fell sharply on Friday after a stronger-than-expected jobs report raised concerns about interest rate hikes.

Nvidia fell 6%, Intel fell 11%, Nebius fell 12%, Arm Holdings fell 13%, and Marvell Technology fell 16% on Friday. The decline was triggered by U.S. nonfarm payrolls rising to a seasonally adjusted 172,000, significantly above the consensus analyst estimate of 80,000.

Growth stocks are particularly sensitive to interest rate movements because a higher portion of their value is derived from future profits. When interest rates rise, investors discount those projected earnings at a higher rate, making them appear less valuable today.

Signs of a pullback in AI stocks were already mounting before the jobs report. Alphabet's $80 billion equity offering and Broadcom's quarterly report—which showed the chipmaker failed to meet Wall Street's expectations—suggested investor appetite for AI-related securities was cooling.