Datavault AI shares plummeted 17.69% amid profit-taking and sector-wide selloff

Datavault AI’s shares plummeted 17.69% in pre-market trading on Dec. 19, 2025, marking one of the steepest declines in the tech sector this year. The selloff intensified amid broader market volatility and sector-specific concerns over regulatory pressures and valuation sustainability.

Analysts attributed the sharp drop to a combination of profit-taking and renewed skepticism about the company’s revenue growth trajectory. Recent earnings reports highlighted challenges in scaling key AI-driven solutions, raising questions about competitive positioning. Investors appeared to price in a more cautious outlook following mixed feedback from enterprise clients on adoption rates.

The decline aligns with a broader correction in AI stocks, as market participants recalibrate expectations amid shifting macroeconomic signals. While Datavault AI maintains a strong R&D pipeline, the sell-off underscores the sector’s sensitivity to short-term execution risks and macro-driven sentiment shifts. Trading volume remained elevated, reflecting active position adjustments ahead of the open.

Investors and analysts are closely watching whether Datavault AI can stabilize its stock price and deliver on its long-term growth narrative. With a market capitalization still in the high-tech growth range, the company's ability to meet quarterly revenue targets will be pivotal. Meanwhile, broader tech indices show mixed signals as earnings season approaches.