'Magnificent Seven' Suffers Record Weekly Market-cap Loss as NVIDIA's Stock Plunges

This week marked a significant downturn for the "Magnificent Seven" stocks, witnessing a collective decrease of $950 billion in their market capitalizations. This decline represents the largest weekly loss of market value ever recorded for this group.

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Although Tesla Inc. experienced the most substantial percentage decline among the group's stocks, it was Apple Inc., Microsoft Corp., and Nvidia Corp. that primarily contributed to the overall market-cap losses. These three companies, with considerably higher valuations compared to Tesla, incurred substantial losses.

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Nvidia bore the brunt of the week's market downturn, witnessing a staggering loss of nearly $300 billion in market capitalization. This amount surpasses the entire market capitalization of its competitor, Advanced Micro Devices Inc., which currently stands at $237 billion.

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The semiconductor sector, including Nvidia, faced significant pressure this week, resulting in a 13.6% decline in Nvidia's stock price. This performance marks the worst weekly decline for Nvidia since September 2, 2022. Additionally, Friday's trading saw a further 10% drop in Nvidia's stock, representing its most significant single-day percentage decline since March 16, 2020. This resulted in the largest one-day price decline ever recorded for Nvidia.

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Analysts attribute the semiconductor sector's decline to a broader unraveling within the industry, which has been accelerating over the past week. Nvidia's loss of $212 billion in market capitalization on Friday set a new daily record for the company, surpassing the $129 billion loss recorded on March 8, 2024. It also stands as the second-largest daily loss of market value for any U.S. company on record.

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Apple and Microsoft also suffered significant losses, with Apple witnessing a $178 billion decline in market capitalization and Microsoft losing $169 billion in market value over the week.

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All seven of the Magnificent Seven stocks experienced declines in their stock prices for the week, with Tesla leading the pack with a 14% decrease. Tesla's market capitalization plummeted by $76 billion, causing the company to slip in the rankings of the largest U.S. corporations, falling below Walmart Inc. on Thursday and Exxon Mobil Corp. on Friday to secure the 14th position.

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Amazon.com Inc. and Alphabet Inc. both saw substantial declines in market value, with Amazon losing $118 billion and Alphabet erasing $41 billion from its valuation. Meta Platforms Inc. also experienced a decline of $68 billion in market capitalization over the week.

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In aggregate, the weekly market-cap losses for the Magnificent Seven far exceeded the previous record set in January 2022, reaching $872 billion according to Trade Algo.