Snowflake (SNOW) shares plummeted 5.11% in pre-market trading on Monday, caught in a broader selloff affecting AI and chip stocks. The decline comes as the market reacts to U.S. President Donald Trump's comments on tariffs and follows target price cuts from two prominent analysts.

The data cloud company's stock drop is part of a larger trend affecting the tech sector. Other AI cloud firms such as Microsoft, Salesforce, and Oracle are also experiencing declines between 1.5% and 2.5%. Chip stocks, including Nvidia, Advanced Micro Devices, and Broadcom, are seeing even steeper falls of 3% to 4%.

Adding to the downward pressure on Snowflake's stock, both Truist Securities and Jefferies have lowered their target prices for the company. Truist Securities cut its target from $225 to $210, while Jefferies reduced its projection more dramatically from $220 to $190. These analyst moves suggest growing caution about Snowflake's near-term prospects in the current market environment.