Nvidia (NVDA) shares fell 6% as the ‘Magnificent 7’ stocks were on track to wipe out $500 billion in market cap during Monday’s market plunge.
As of 11:35 a.m. ET the ‘Mag 7’ group were tracking their 10th biggest market valuation decline ever. Together the seven stocks make up roughly 43% of the Nasdaq 100 (^NDX) weighting.
The other components of the group also dropped with Alphabet (GOOGL) (GOOG) and Meta (META) falling more than 2%. EV giant Tesla (TSLA) plunged more than 3%.
E-commerce giant Amazon (AMZN) dropped more than 3% while software maker Microsoft (MSFT) slipped more than 2%.
Individual company news also put pressure on the Mag 7 stocks.
Apple (AAPL) dropped nearly 4% after Berkshire Hathaway (BRK-B) revealed over the weekend it had cut half of its stake in the iPhone maker.
AI chip heavyweight Nvidia fell as much as 13% at the market open to pare some of its losses. Analysts noted recent negative catalysts weighing on the stock.
The Information reported the company’s upcoming next-generation AI chips will be delayed by three months, potentially impacting its biggest customers like Microsoft, Alphabet and Meta.
“Nvidia has a window to sell to Microsoft, Amazon, Google and Meta while those companies are hot and bothered about building out data centers as quickly as they can. That window will shut at some point,” Gil Luria, D.A Davison senior software analyst, told Yahoo Finance on Monday.
“If Nvidia is missing out on some of those sales during that window, that does have an impact on Nvidia’s value,” said the analyst.
Monday’s action follows a recent heavy sell-off on Wall Street as chip stocks have gotten hammered over the past week.
On Friday Nvidia closed off the lows of the session, down only 1.8% while Intel (INTC) shares cratered over 26% following a disastrous second quarter earnings report, and a broad decline in chip stocks led the tech sector lower.
After the July jobs report, which showed job growth slowed last month and the unemployment rate reached a nearly three-year high, the Nasdaq Composite (^IXIC) slipped into correction territory, defined as a 10% drop from its most recent high.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
