The technology sector, which led market gains in 2024, has faced a sharp downturn in 2025, highlighted by Big Tech’s historic market capitalisation loss on Monday.
The “Magnificent Seven” group of major technology companies collectively shed $759 billion in market value—their largest single-day decline on record, according to Dow Jones Market Data, which tracks figures back to May 2012, when Meta Platforms Inc. went public.
While Tesla Inc. posted the steepest individual stock drop, down 15.4%, Apple Inc. and Nvidia Corp. had the most significant market-cap impact. Apple’s shares fell 4.9%, erasing $174 billion from its valuation, while Nvidia’s 5.1% decline wiped out $139 billion. Tesla’s losses amounted to $130 billion in market value.
Wedbush analyst Daniel Ives advised patience, stating that while investors need clarity on policy under Donald Trump’s administration, he does not believe it will alter the trajectory of the AI revolution.
He highlighted Nvidia, Apple, Tesla, Microsoft Corp., and Palantir Technologies Inc. as key plays for long-term investors, emphasising that the $2 trillion in expected AI capital expenditures remains intact.
The selloff follows a stellar 2024 for tech stocks, with Nvidia surging 171% and Meta as the second-best performer. However, Tesla has plunged 45% this year, while Nvidia has declined 21%. Only Meta remains in positive territory, up 2% year-to-date.
Among the group, Microsoft and Amazon.com Inc. fared slightly better than the Nasdaq Composite Index on Monday, declining 3.3% and 2.4%, respectively, compared with the index’s 4.0% drop. Still, the market-cap losses were significant—$98 billion for Microsoft and $50 billion for Amazon.
Other major tech stocks also took hits, with Alphabet Inc. losing $97 billion in value, while Meta shed $70 billion.
Despite short-term volatility, analysts remain divided on whether large-cap tech stocks are still overvalued. Melius Research noted that Nvidia now trades at lower valuations than before ChatGPT’s launch, while Glenmede strategists observed that while premiums on major tech stocks have declined from their peaks, they remain elevated.