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Highlights
- Big Tech stocks experienced a record $759 billion market cap decline in a single day.
- Tesla (TSLA) led losses with a 15.4% drop, while Apple (AAPL) and Nvidia (NVDA) saw the highest valuation cuts.
- Analysts remain divided on the long-term outlook for large-cap tech stocks.
The technology sector, which dominated market gains throughout 2024, has encountered significant turbulence in early 2025, marked by the largest single-day market capitalization decline in Big Tech history. On Monday, the “Magnificent Seven” tech companies collectively lost a staggering $759 billion in valuation, as per Dow Jones Market Data, which has tracked such figures since Meta Platforms (META) went public in 2012.
Among these companies, Tesla (TSLA) suffered the sharpest stock drop, plummeting 15.4% and erasing $130 billion in market value. Meanwhile, Apple (AAPL) and Nvidia (NVDA) took the biggest hits in overall valuation, with Apple’s shares declining 4.9%, wiping out $174 billion, and Nvidia slipping 5.1%, reducing its market cap by $139 billion.
The downturn comes after a stellar 2024 for tech stocks, particularly Nvidia (NVDA), which surged 171% last year. Meta Platforms (META) was the second-best performer, while Tesla (TSLA) has seen a dramatic 45% decline year-to-date, with Nvidia also down 21% so far in 2025. In contrast, Meta remains slightly positive for the year, up 2%.
Other major players were not spared from the selloff. Microsoft (MSFT) and Amazon (AMZN) performed marginally better than the broader Nasdaq Composite Index, which fell 4% on Monday. Microsoft dropped 3.3%, shedding $98 billion in market value, while Amazon declined 2.4%, erasing $50 billion. Alphabet (GOOGL) also saw significant losses, with a $97 billion reduction in market cap, while Meta (META) lost $70 billion.
The decline has raised questions about the valuation of large-cap tech stocks. While some analysts argue that these companies are still trading at elevated premiums, others note that Nvidia (NVDA) now trades at lower valuations than before ChatGPT’s launch. Melius Research highlighted this shift, while Glenmede strategists pointed out that despite recent drops, major tech stocks continue to trade at historically high levels.
Market uncertainty remains, particularly with the need for more clarity on economic policy under Donald Trump’s administration. However, industry experts emphasize that the artificial intelligence boom remains a driving force for tech investments. With $2 trillion in AI-related capital expenditures projected, some analysts view the current downturn as a short-term adjustment rather than a long-term trend shift.
