Nvidia shares fall as ‘Magnificent 7’ shares lose more than $650 billion in market cap

Shares of Nvidia (NVDA) fell more than 6% on Monday after shares of the “Magnificent Seven” suffered a more than $650 billion drop in value during Monday’s market decline.

The iconic group of seven stocks has lost about $1.3 trillion in market capitalization over the past three trading sessions.

“Mag Seven” component Alphabet (GOOGL, GOOG) fell 4%, while Meta (META) fell more than 2%. EV giant Tesla (TSLA) fell by more than 4%.

E-commerce giant Amazon (AMZN) and software maker Microsoft (MSFT) also fell.

In addition to the sell-off in the broad market, individual company news also put pressure on Mag Seven shares.

On Monday, a judge ruled that Alphabet’s Google search and advertising businesses had violated antitrust laws, sending the tech giant’s shares lower for the session.

Apple (AAPL) fell more than 4% after Berkshire Hathaway (BRK-B) revealed this weekend that it had offloaded half its stake in the iPhone maker.

Nvidia fell as much as 13% in the open market to pare some of its losses. Analysts noted that recent negative catalysts weighed on the AI ​​chip heavyweight.

The Information reported The company’s upcoming next-generation AI chips would be delayed by three months, potentially impacting its biggest customers such as Microsoft, Alphabet and Meta.

“Nvidia has a window to sell to Microsoft, Amazon, Google and Meta while those companies are busy building out data centers as quickly as possible. That window will close at some point,” said Gil Luria, DA Davidson senior software analyst, Yahoo Finance told Monday.

“If Nvidia loses some of that revenue during that period, it will impact Nvidia’s value,” the analyst said.

Monday’s action follows a recent heavy sell-off on Wall Street after chip stocks came under pressure over the past week.

On Friday, Nvidia closed at the low of the session, down just 1.8%, while shares of Intel (INTC) plunged more than 26% after a disastrous crisis. second quarter profit report and a broad decline in chip stocks led to a decline in the technology sector.

Following the July jobs report, which showed job growth slowed last month and the unemployment rate hit a nearly three-year high, the Nasdaq Composite (^IXIC) entered correction territory, defined as a 10% decline from its most recent Highlight.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X @ines_ferre.