Nvidia (NVDA) shares fell about 8% in early trading as Magnificent 7 shares saw their worst intraday market value loss ever during Monday’s market rout.
As of 10:00 a.m. ET, the MAG 7 Group’s market cap has fallen by more than $860 billion. Together, MAG 7 shares make up about 43% of the weight of the Nasdaq 100 Index (^NDX).
Other components of the group also fell, with shares of Alphabet (GOOGL) (GOOG) and Meta (META) falling more than 3%. Shares of electric car giant Tesla (TSLA) fell more than 5%.
E-commerce giant Amazon (AMZN) shares fell more than 8% while software company Microsoft (MSFT) shares fell 5%.
Individual corporate news also put pressure on Mag 7 shares.
Apple Inc. (AAPL) shares fell more than 4% after Berkshire Hathaway Inc. (BRK-B) revealed over the weekend that it had cut its stake in the iPhone maker in half.
Shares of artificial intelligence chip giant Nvidia fell about 13% at the open, recouping some of their losses, with analysts pointing to recent negative catalysts weighing on the stock.
the Reported information Apple is expected to delay the launch of its next-generation AI chips by three months, potentially affecting its biggest customers like Microsoft, Alphabet and Meta.
“Nvidia has an opportunity to sell to Microsoft, Amazon, Google and Meta as they scramble to build data centers as quickly as possible,” Gil Luria, senior software analyst at DA Davison, told Yahoo Finance on Monday. “That opportunity will close at some point.”
“If Nvidia loses some of those sales during that period, that will have an impact on Nvidia’s value,” the analyst said.
Monday’s move comes on the heels of a recent sell-off on Wall Street, with chip stocks taking a beating over the past week.
On Friday, Nvidia closed at session lows, down just 1.8%, while Intel (INTC) shares fell more than 26% after the disaster. Second quarter earnings The report caused a broad decline in chip stocks, dragging the technology sector lower.
After 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) slipped into correction territory, defined as a 10% drop from its recent high.
Ines Ferry is a senior business reporter at Yahoo Finance. You can follow her on X on @ines_ferre.