Apple and Nvidia have led the sell-off in tech stocks due to fears of a recession in the US, as well as after Berkshire Hathaway’s decision to cut its stake in the iPhone maker by almost 50%.
Highly profitable shares of the so-called Magnificent Seven, which includes Alphabet, Amazon, Microsoft, Meta, Tesla, Apple and Nvidia, fell by 6.5%. Shares of other tech companies such as Intel and AMD also fell by about 7.8%.
The losses of the “Magnificent Seven” should reduce the total market value of the companies by almost $1 trillion. Nvidia shares fell by 14%, and Apple’s fell by more than 8%, Bloomberg writes. The fall of Nvidia will destroy about $358 billion in market value, while Apple will lose $277 billion.
Shares of Amazon, Microsoft, and Alphabet – the three largest cloud computing providers – fell as their earnings reports erased the big bets on big investments in artificial intelligence that had quickly spurred growth.
After more than a year of growth, shares of large tech companies have come under pressure in the past few weeks. In particular, because the payback of large investments in AI will take longer than some investors had hoped. Thus, the many months of growth in the sector have been interrupted.
