- • Nvidia shares tanked 6% as the ‘Magnificent 7’ tech stocks were on track to lose around $520 billion in market capitalization during Monday’s market plunge
- • The ‘Magnificent 7’ stocks – Nvidia, Alphabet, Meta, Tesla, Amazon, Microsoft and Apple – make up roughly 43% of the Nasdaq 100 weighting
- • Nvidia’s stock fell as much as 13% at the open amid reports of delays for its next-generation AI chips and potential impact on sales to big customers like Microsoft and Google
Nvidia shares fell 6% as the Magnificent Seven stocks were on track to wipe out roughly $520 billion in market cap during Monday’s market plunge. As of 11:35 a.m. ET, the Mag Seven were tracking their 10th biggest market valuation decline ever. Together, the seven stocks make up roughly 43% of the Nasdaq 100 (NDX) weighting.
The other components of the group also dropped, with Alphabet (GOOGL, GOOG) and Meta (META) falling more than 2%. EV giant Tesla (TSLA) plunged more than 3%. Ecommerce giant Amazon (AMZN) dropped more than 3% while software maker Microsoft (MSFT) slipped more than 2%.
Company News Adds Pressure
Individual company news also put pressure on the Mag Seven stocks. Apple (AAPL) dropped nearly 4% after Berkshire Hathaway (BRK-B) revealed over the weekend it had cut half of its stake in the iPhone maker.
AI chip heavyweight Nvidia fell as much as 13% at the market open to pare some of its losses. Analysts noted recent negative catalysts weighing on the stock. The Information reported the company’s upcoming next-generation AI chips would be delayed by three months, potentially impacting its biggest customers like Microsoft, Alphabet and Meta.
Broader Tech Selloff
Monday’s action follows a recent heavy sell-off on Wall Street as chip stocks have gotten hammered over the past week.
Nvidia stock tumbled more than 5% Monday amid a broader market selloff. After the July jobs report, which showed job growth slowed last month and the unemployment rate reached a nearly three-year high, the Nasdaq Composite (IXIC) slipped into correction territory, defined as a 10% drop from its most recent high.
