Last week marked the worst-ever weekly loss for group of stocks collectively known as the Magnificent Seven — Nvidia, Meta Platforms, Amazon, Microsoft, Alphabet, Apple, and Tesla — as their collective market capitalizations plummeted by $950 billion.
Among these tech giants, Tesla shares saw the largest percentage drop for the week. However, Nvidia stock, along with Apple and Microsoft, were bigger contributors to the market-cap losses due to their greater individual valuations.
California-based chipmaker Nvidia emerged as the biggest loser in terms of market cap, shedding nearly $300 billion. This loss exceeded the total market capitalization of its rival, Advanced Micro Devices (AMD), which last stood at close to $237 billion.
Nvidia stock tumbled by 13.6% last week as the semiconductor sector faced intense pressure. The company also recorded its worst weekly performance percentage-wise since a 16.1% drop on September 2, 2022.
Nvidia shares plunged 10% on Friday alone, marking their most substantial single-day percentage decline since March 16, 2020, according to Dow Jones Market Data. With the stock off by $85, it secured its largest one-day price decline on record.
Mizuho analyst Jordan Klein noted a broad “unwind of the entire sector” in chips, which has been "accelerating day by day,” according to comments cited by MarketWatch.
On Friday, Nvidia set a new daily record for itself with a $212 billion drop in market cap, surpassing its previous daily loss record of $129 billion on March 8, 2024.
It also recorded the second-worst daily loss of market value for any U.S. company in history.
At the time of writing on Monday, April 22, Nvidia stock was trading up 1.32% at $772.05.
Despite the recent losses, NVDA shares remain close to 54% up year-to-date (YTD) and have rocketed up by 182% on a 12-month basis.
In contrast, the benchmark S&P 500 index has risen by 4.15% YTD and 20.17% in the same respective timeframes.
Other notable losses included Apple, which saw a reduction of $178 billion in market cap, and Microsoft, which decreased by $169 billion.
All seven companies in the Magnificent Seven saw their stock prices decline last week. Tesla led the slide with a 14% drop, leading its market cap to decrease by $76 billion. This decline pushed Tesla below both Walmart Inc. and Exxon Mobil, ranking it as the 14th largest U.S. company — a position it has not held since January 2023.
E-commerce giant Amazon and Facebook parent company Meta Platforms also saw their market capitalizations dive last week, losing $118 billion and $68 billion respectively. Alphabet’s market cap fell by $41 billion.
The aggregate market-cap loss for the Magnificent Seven last week far surpassed the previous record loss of $872 billion, set in January 2022.
Multiple members of the Magnificent Seven are due to report earnings this week, with standouts including Alphabet, Microsoft, Tesla, Meta, and Amazon.
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Stock market today: the Nasdaq Composite Index surged to new highs today, fueled primarily by Nvidia’s unprecedented achievement of reaching a $4 trillion market valuation.
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