Nvidia shares tank as ‘Magnificent 7’ stocks on track to lose $620 billion in market cap

Nvidia (NVDA) shares fell 6% as the “Magnificent Seven” stocks were on track to wipe out roughly $620 billion in market cap during Monday’s market plunge.

As of 2:35 p.m. ET, the Mag Seven were having their worst day since July 24. Together, the group of stocks make up more than 40% 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 4%.

Ecommerce giant Amazon (AMZN) dropped more than 4%, while software maker Microsoft (MSFT) slipped more than 3%.

Individual company news also put pressure on the Mag Seven stocks.

Apple (AAPL) dropped more than 5% amid the broader market selloff and after Berkshire Hathaway (BRK-B) revealed over the weekend it had cut half of its stake in the iPhone maker.

Nvidia fell as much as 13% at the market open to pare some of its losses. Analysts noted recent negative catalysts weighing on the AI chip heavyweight.

The Information reported the company’s upcoming next-generation AI chips would 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. Davidson 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.

Nvidia stock tumbled more than 5% Monday amid a broader market selloff. (AP Photo/Jeff Chiu, File) (ASSOCIATED PRESS)

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.