03:50 PM EDT, 05/06/2025 (MT Newswires) -- Tech stocks declined late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) shedding 0.3% and the SPDR S&P Semiconductor ETF (XSD) falling 1%.

The Philadelphia Semiconductor index was down 0.5%.

In corporate news, Turtle Beach ( TBCH ) shares tumbled nearly 13%. The company is expected to face near-term pressure as new China tariffs and the delayed release of Grand Theft Auto VI weigh on its outlook, Wedbush said in a research note Tuesday. Wedbush downgraded the stock to neutral from outperform and cut its price target to $9 from $21, citing reduced earnings forecasts and limited near-term catalysts.

Alphabet's (GOOGL) Google ( GOOG ) is facing a demand from the US Department of Justice to divest its ad technology business, Reuters reported. Alphabet eased 0.2%.

Palantir ( PLTR ) raised its full-year guidance as it recorded Q1 revenue above market expectations, though earnings were in line with estimates, while the software maker issued an upbeat sales outlook for the ongoing three-month period. Its shares were falling past 12%.

Microsoft ( MSFT ) is the main investor still holding out on approving OpenAI's proposed plan to restructure its for-profit division despite ongoing negotiations, Bloomberg reported. Separately, OpenAI has agreed to buy AI-assisted coding tool Windsurf for roughly $3 billion, Bloomberg reported. Microsoft ( MSFT ) shares were down 0.2%.