Shares of Nvidia (NVDA) fell 6% as the “Magnificent Seven” stock was on track to lose about $620 billion in market cap during Monday’s stock market drop.
At 2:35 p.m. ET, the Mag Seven had their worst day since July 24. Together, the stock groups make up more than 40% of the Nasdaq 100’s (^NDX) weighting.
The group’s other components also fell, with Alphabet (GOOGL, GOOG) and Meta (META) down more than 2%. EV giant Tesla (TSLA) fell more than 4%.
E-commerce giant Amazon (AMZN) fell more than 4%, while software maker Microsoft (MSFT) lost more than 3%.
Separate corporate news also put pressure on Mag Seven shares.
Apple (AAPL) fell more than 5% amid the broader market sell-off and after Berkshire Hathaway (BRK-B) announced over the weekend that it had halved its stake in the iPhone maker.
Nvidia fell as much as 13% on open market, recouping some of its losses. Analysts noted that recent negative catalysts weighed on the AI chip heavyweight.
According to The Information, the launch of the company’s next-generation AI chips would be delayed by three months, potentially impacting the company’s biggest customers such as Microsoft, Alphabet and Meta.
“Nvidia has a window to sell to Microsoft, Amazon, Google and Meta, while those companies are busy building data centers as quickly as possible. That window will close at some point,” Gil Luria, senior software analyst at DA Davidson, told Yahoo Finance on Monday.
“If Nvidia loses some of those sales during that period, that will definitely impact the value of Nvidia,” the analyst said.
Monday’s action follows a recent heavy sell-off on Wall Street, as chip stocks have fallen sharply over the past week.
On Friday, Nvidia closed the session down just 1.8%, while shares of Intel (INTC) tumbled more than 26% after a disastrous second-quarter earnings report and a broad decline in chip stocks that dragged down the tech sector.
Following 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) entered correction territory, defined as a 10% decline from its most recent high.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X on @ines_ferre.
