The turbulent week in the financial markets witnessed a dramatic decline in the market capitalizations of the esteemed “Magnificent Seven” stocks, marking their most significant weekly loss of market value ever recorded—a staggering $950 billion collectively.
While Tesla Inc. experienced the most pronounced percentage decline within the group, it was Apple Inc., Microsoft Corp., and Nvidia Corp. that bore the brunt of the market-cap losses due to their considerably higher valuations compared to the electric vehicle manufacturer.
Nvidia emerged as the hardest-hit, with its market cap plummeting by nearly $300 billion. This remarkable figure even surpassed the total market capitalization of its competitor, Advanced Micro Devices Inc., currently standing at $237 billion.
The semiconductor sector, epitomized by Nvidia, faced immense pressure throughout the week, leading to a significant 13.6% decline in Nvidia’s stock price. This marked Nvidia’s worst weekly performance since September 2, 2022. The situation exacerbated on Friday, with the stock witnessing a staggering 10% drop—its largest single-day percentage decline since March 16, 2020. The stock shed nearly $85, securing its largest one-day price decline on record.
Jordan Klein, a desk-based analyst at Mizuho, described the week as witnessing an accelerating unraveling of the entire semiconductor sector, underscoring the sector’s vulnerability to market fluctuations.
The market cap of Nvidia suffered a monumental blow on Friday, recording a new daily record loss of $212 billion. This figure surpassed the previous record set on March 8, 2024, marking the second-worst daily loss of market value for any U.S. company on record.
Meanwhile, Apple witnessed a loss of $178 billion in market cap during the week, and Microsoft’s market value plummeted by $169 billion. All seven stocks comprising the Magnificent Seven observed weekly declines in their stock prices, with Tesla leading the pack with a 14% drop.
The decline caused Tesla’s market cap to suffer a $76 billion decline, plummeting the company down the ranks of the largest U.S. corporations. Tesla slipped below Walmart Inc. and Exxon Mobil Corp. to the 14th position—its lowest valuation since January 2023.
Amazon.com Inc. saw a significant reduction of $118 billion in market value, while Alphabet Inc. and Meta Platforms Inc. experienced declines of $41 billion and $68 billion, respectively.
In summary, the collective weekly market-cap losses for the Magnificent Seven exceeded the previous record set in January 2022, reflecting the severity of the downturn in the tech sector and the broader financial markets.
