Nvidia, Apple Propel 'Magnificent Seven' to $650 Billion Market Cap Wipeout

On Monday, the technology sector faced a significant selloff, leading to a projected loss of over $650 billion in market capitalization for the "Magnificent Seven," a group of major tech companies.

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Shortly after the market opened on Monday, these leading technology companies saw a combined market cap reduction of $659 billion based on intraday trading. The group's largest single-day market cap loss to date was $744 billion, recorded on July 24.

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In the past three trading sessions, the "Magnificent Seven" have collectively lost $1.28 trillion in market capitalization.

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Nvidia Corp. is leading the decline with a drop of 6.22% in its stock value. Apple Inc. is close behind for the day, showing a 4.13% decrease.

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Apple has experienced a $150 billion drop in market cap based on intraday data, making it the biggest loser in the group. Its stock has declined by 5.2%, setting it up for its most substantial drop in nearly two years. This decline follows news from Warren Buffett’s Berkshire Hathaway Inc., which revealed over the weekend that it had further reduced its stake in the iPhone maker.

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On the other hand, Nvidia's market cap has decreased by almost $180 billion on Monday alone, with its shares falling by approximately 7%.

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Other members of the "Magnificent Seven" are also experiencing declines. Shares of Microsoft Corp. are down 2.05%, Amazon.com Inc. has decreased by 3.44%, Alphabet Inc. (both GOOG and GOOGL) are down 1.88% and 1.78%, respectively, Tesla Inc. has dropped by 3.05%, and Meta Platforms Inc. is down 1.11%. Each of these stocks has fallen by at least 3% in Monday's session.

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The overall market is also under pressure, with the S&P 500 dropping by 3.1% and the Nasdaq Composite Index falling by 4.0%. Nvidia, however, is experiencing a more severe decline compared to most other S&P 500 stocks during the morning session. This intensified drop is not only due to its significant growth in recent years but also because of reports that its Blackwell chip lineup is facing a delay of several months.

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Jordan Klein, a desk-based analyst at Mizuho, mentioned that if the delay occurs, it might shift expected revenue into later quarters rather than the early ones where investors had anticipated seeing the initial sales impact from Blackwell chips. Klein noted, "This would be more of a push out of revenues, but in this market environment, many investors might draw their own conclusions, assume weaker demand, and likely sell the stock."

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Over the past three sessions, Nvidia's market cap has seen a reduction of $419 billion.

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