'Magnificent Seven' Stocks Lose $797 Billion in Market Value on Worst Day Since April 2025
The 'Magnificent Seven' group of megacap stocks experienced their worst single-day decline since April 2025, losing approximately $797 billion in market value. Alphabet (GOOG, GOOGL) and Tesla (TSLA) led the downturn with drops of 6% and 14%, respectively, following disappointing investor reactions to increased capital expenditures on AI infrastructure. Investors shifted focus toward 'picks and shovels' companies that benefit from AI spending. Shares in memory chip makers like Micron Technology (MU), SK Hynix (SKHY), and Sandisk (SNDK) rose as hyperscaler stocks fell. Analysts suggested diversifying into more stable, earnings-driven investments rather than speculative future-oriented plays. Tesla's heavy investment plans for AI-related projects such as robotaxis have raised concerns about the feasibility of long-term projections.
Tickers: $AAPL $AMZN $GOOG $GOOGL $META $MSFT $NVDA $SNDK $TSLA
Topics: AI infrastructure spending Alphabet results capital expenditures Magnificent Seven Tesla results