The so-called “Magnificent Seven” stocks have experienced a significant downturn, collectively losing nearly $3 trillion in market value over the past month. This group of tech giants, including Nvidia, Microsoft, Alphabet, Apple, Amazon, Meta, and Tesla, faced a tough trading session on Monday, with each company’s stock taking a hit.
Nvidia
Nvidia saw a particularly sharp decline, with shares dropping 6.4% on Monday. The drop was triggered by reports suggesting delays in its next-generation Blackwell system, which includes advanced AI chips. The delay, reportedly due to design flaws, has significantly impacted Nvidia’s market capitalization, wiping out about $845 billion.
Microsoft
Microsoft’s stock fell by 3.3%, a relatively modest decline compared to some of its peers. However, the company has faced mounting concerns over escalating AI spending. Despite a strong performance in cloud revenue, Microsoft’s shares have slid over 15% since hitting an all-time high in early July, erasing $540 billion from its market cap.
Alphabet
Alphabet, the parent company of Google, also faced challenges. The company’s heavy investment in AI infrastructure has sparked one of the largest tech sell-offs this year. Additionally, a federal judge’s ruling found that Google violated U.S. antitrust law by paying billions to secure its search engine’s default position on smartphones. Alphabet’s market capitalization has decreased by more than $377 billion since July 10.
Apple
Apple’s stock opened nearly 10% lower on Monday after Warren Buffett’s Berkshire Hathaway revealed it had cut its stake in the company by almost 50% in the second quarter. Although Apple managed to recover slightly, closing down 4.8%, its market cap has declined by over $390 billion in recent weeks.
Amazon
Amazon faced a tough trading session, with shares falling 4.1%. The decline followed a disappointing quarterly earnings report that missed revenue estimates and provided weak guidance. Despite a 19% increase in Amazon Web Services cloud revenue, the company’s market cap has dropped by about $410 billion from its recent high.
Meta
Meta Platforms emerged as a rare bright spot among the Magnificent Seven. The company reported better-than-expected earnings and outlined how its AI investments are yielding positive results. Although Meta’s shares declined 2.5% on Monday, the company has still seen a market cap reduction of $165 billion since early July.
Tesla
Tesla’s recent performance has been underwhelming, with a disappointing second-quarter earnings report revealing a 45% decline in profits. The electric vehicle maker’s shares fell 4.2% on Monday, contributing to a total market cap loss of over $200 billion since its recent peak.
The broader U.S. tech sector suffered a significant blow on Monday, with the S&P 500 recording its worst day since September 2022, falling 3%. This downturn follows a series of declines in recent weeks, driven by concerns about a weakening U.S. economy and overvalued tech stocks. The Magnificent Seven stocks have been at the forefront of these losses, reflecting broader market anxieties.