US Tech Seven Giants Wipe Out $797 Billion in Market Value in Single Day, Worst Since April 2025

According to Yahoo Finance, the US 'tech seven giants' experienced their most severe single-day decline on Thursday (23rd), since the market sell-off triggered by tariffs in April 2025.

Bloomberg data shows that the seven major tech stocks — Microsoft (MSFT-US), Amazon (AMZN-US), Apple (AAPL-US), Alphabet (GOOGL-US), Nvidia (NVDA-US), Tesla (TSLA-US), and Meta (META-US) — collectively erased approximately $797 billion in market value.

Alphabet and Tesla led the downturn after reporting second-quarter earnings, with shares plunging 7% and 14% respectively. Tesla alone wiped out around $200 billion in market value.

Despite Alphabet reporting strong revenue growth and a significant increase in cloud service backlog, rising capital expenditure on AI infrastructure unsettled investors, prompting a sell-off.

Mark Mahaney, Senior Managing Director at Evercore ISI, said, 'We are in a massive investment cycle... Investors are favoring companies that are receiving investment capital over those spending it.'

Alphabet's increased capex highlights how 'picks and shovels' providers are benefiting from the massive spending surge in AI infrastructure.

As hyperscale cloud providers fell, memory chipmakers Micron Technology (MU-US), SK Hynix (SKHY-US), and Sandisk (SNDK-US) saw their stock prices rise across the board.

Electric vehicle maker Tesla also plans to heavily invest in AI, further shifting its focus toward autonomous Robotaxis and robotics, though it still has a long way to achieve these goals.

Brent Schutte, Chief Investment Officer at Northwestern Mutual Wealth Management Company, said investors should diversify into lower-valued stocks: 'Investors should focus on actual earnings and pay reasonable prices for companies not reliant on distant future visions, as the realization of those visions remains uncertain. I think this has always been Tesla’s problem.'