This week saw a staggering decline in the market capitalizations of the “Magnificent Seven” stocks, collectively losing $950 billion in market value. Among these, Nvidia took the hardest hit, shedding nearly $300 billion in market cap, surpassing even the entire market value of its rival, Advanced Micro Devices Inc., which stands at $237 billion.
Nvidia’s stock plummeted by 13.6% over the week, marking its worst weekly performance since September 2, 2022.
Friday witnessed a particularly grim milestone for Nvidia, with a $212 billion loss in market cap, the largest single-day drop in its history and the second-largest daily loss for any U.S. company.
The broader semiconductor sector faced pressure, contributing to Nvidia’s woes. According to analyst Jordan Klein from Mizuho, there has been a significant unwinding of the entire sector, intensifying over the past week.
Other tech giants also suffered substantial losses. Apple and Microsoft saw market cap declines of $178 billion and $169 billion, respectively. The entire group of the Magnificent Seven experienced weekly stock price declines, with Tesla leading the pack with a 14% drop.
Tesla, in particular, faced a significant setback, losing $76 billion in market cap and slipping down the ranks of the largest U.S. companies, falling below Walmart and Exxon Mobil.
Amazon, Alphabet, and Meta Platforms also saw significant declines in market value, further contributing to the overall downturn. The collective market-cap losses for the Magnificent Seven this week far surpassed the previous record set in January 2022, underscoring the severity of the market turmoil.
