03:43 PM EDT, 08/05/2025 (MT Newswires) -- Tech stocks were declining late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.7% and the SPDR S&P Semiconductor ETF (XSD) shedding 0.8%.

The Philadelphia Semiconductor index fell 1%.

In corporate news, Microsoft ( MSFT ) -backed OpenAI said Tuesday it is releasing two open-weight AI language models at "low cost." Microsoft ( MSFT ) shares were down 1.2%.

Axon Enterprise ( AXON ) reported improved Q2 non-GAAP earnings and revenue late Monday that beat analyst expectations. Axon shares jumped 16%.

The US is looking at ways to equip AI chips with better location-tracking capabilities, Bloomberg reported, citing a senior government official. Nvidia ( NVDA ) representatives were asked by Beijing last week to explain alleged security risks related to its AI chips sold to China. Nvidia ( NVDA ) shares were down 0.6%.

Palantir ( PLTR ) reported late Monday Q2 results that topped estimates as US sales increased. Its shares jumped past 6%.