The technology sector is experiencing a brutal downturn, sending shockwaves through investors. Monday’s market plunge marked the steepest drop in the Nasdaq since 2022, with the seven largest tech companies losing a staggering $750 billion in combined market value.
Leading the losses was Apple, which saw its valuation shrink by $174 billion. Meanwhile, Nvidia, a major player in the AI chip sector, lost nearly $140 billion in market capitalization, with its stock dropping 5%—a striking reversal for a company that reached record highs just two months ago.
The electric vehicle giant Tesla experienced the sharpest percentage drop, plunging 15% in a single day—the worst decline since 2020. Tesla’s stock has been on a downward spiral, shedding over half its value since peaking in December. Monday’s crash wiped out $130 billion from the company’s worth.
Other tech heavyweights weren’t spared either. Microsoft and Alphabet lost $98 billion and $95 billion, respectively, while Amazon and Meta saw declines of $50 billion and $70 billion. Alphabet and Meta both dropped over 4%, with Microsoft and Amazon each down at least 2%. The Technology Select Sector SPDR Fund, a key tech index, fell more than 4%, officially entering correction territory, as its value is now over 14% below recent highs.
The selloff intensified, dragging the Nasdaq to a six-month low. Many tech companies depend on overseas suppliers for manufacturing, and new tariffs threaten to drive costs higher. This has exacerbated fears of an economic downturn, with former President Trump stating over the weekend that a U.S. recession remains a possibility.
The semiconductor industry also took a major hit, as chipmakers find themselves at the center of new trade tensions. Just last week, the government announced a $100 billion investment from Taiwan Semiconductor Manufacturing, referring to the firm as the “most powerful” in the world. Despite these efforts to boost domestic production, the VanEck Semiconductor ETF plunged 3% over the past week, down more than 16% since the inauguration. Heavy selling continued Monday, with the ETF shedding another 5%. Major chipmakers were not spared, as Marvell Technology fell 8%, while ASML Holding and Micron Technology dropped over 6% each. Broadcom also slid 5%.
