Zinger Key Points
- Apple keeps its $3-trillion status, but Nvidia dropped below $2.6 trillion due to market volatility.
- Valuations dipped due to what Wedbush analyst Daniel Ives aptly described as a "Category 5 storm sell-off."
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In the rollercoaster world of tech stocks, Apple Inc. AAPL managed to keep its $3 trillion market cap.
Nvidia Corp. NVDA, a fellow trillion-dollar titan, fell short due to recent market turbulence.
What Happened: Apple managed to hold its $3-trillion status since June 2023; its stock boasts a 15.87% increase over the past year and a 7.64% gain year-to-date. The Cupertino, California-based company’s market cap is currently hovering at around $3.2 trillion.
Nvidia, like Microsoft Corp. MSFT, achieved the $3 trillion milestone this year. But its valuation currently sits at $2.59 trillion, despite a breathtaking 129.54% surge over the past year and a 110.51% increase year-to-date.
The Technology Select Sector SPDR Fund XLK has declined 4.77% since the beginning of August, outpacing the S&P 500 Index‘s losses (at -3.80%).
Analysts and investors alike have been on edge, watching mega-cap tech earnings reports with bated breath. The sector’s initial optimism quickly faded as disappointing earnings and cautious outlooks from some key players triggered a sell-off.
The Nasdaq 100 Index, tracking the top 100 non-financial tech stocks, entered correction territory last week. From its intraday high of 18,671.07 on July 11, the index has plummeted over 10%, highlighting the severity of the pullback.
Why It Matters: The collective losses of Apple, Nvidia, Microsoft and Amazon.com Inc AMZN equaled the entire U.S. spending for national defense and veterans in 2023.
The Nasdaq Composite has taken the brunt of the damage, shedding about 7.27% of its value over the past five days.
Wedbush analyst Daniel Ives aptly described the situation as a “Category 5 storm sell-off.”
“The perfect storm panicked tech sell-off has now gained steam after the weaker jobs report,” Ives noted. Despite the turbulence, some analysts see this as a natural market correction rather than a full-blown crisis. Ives reassured investors by calling it “just a white-knuckle moment in a multi-year bull run for tech stocks.”
ETF Watch: Track these tech behemoths via exchange-traded funds (ETFs): Invesco NASDAQ 100 ETF QQQM and the Invesco QQQ Trust QQQ.
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