Magnificent 7 Loses $1trn in One Day – End of Tech Super Pack?
Investors writing off the Magnificent 7 after Wall Street’s $3 trillion tech selloff are making a costly mistake, warns the CEO of deVere Group, one of the world’s largest independent financial advisory organisations.
Nigel Green’s comments come as the Magnificent 7 lost more than $1 trillion in combined market value in a single session on Thursday. Nvidia alone shed over $440 billion as its shares tumbled more than 9%, erasing its 2026 gains.
He says: “Wiping $1 trillion off the tech super pack in a day naturally makes people ask whether its reign is over. The answer is no.
“These companies still dominate cloud computing, chips, smartphones, advertising and online retail, and they still have years of growth ahead.
“What’s finished is the habit of buying all seven as one trade. From here, each will be judged on its own numbers, and many investors will see this selloff as a chance to buy the dip.”
The rout spread far beyond Big Tech. All 11 S&P 500 sectors closed in the red. The index sank 4.4%, the Dow shed more than 1,800 points, and the Nasdaq Composite plunged 5.5% in its heaviest one-day fall since April 2025, joining the small-cap Russell 2000 in correction territory.
Yet the seven no longer moved as a pack. Apple slipped 1.5%, while Microsoft, Meta, Amazon and Alphabet fell 2% to 4%. Outside the group, Micron and AMD each plunged around 17%.
“Look at the gap between those moves,” says Nigel Green. “Investors hit the most stretched corners of the chip trade hardest. Businesses with enormous cash flows and products people use every day held up far better.
“Even in a panic, investors picked their targets. The market has started sorting the Magnificent 7 into stronger and weaker hands.”
Fear surged across Wall Street. The VIX volatility gauge hit its highest level since March 31 and posted its biggest one-day jump since April 2025.
Falling stocks outnumbered rising ones by nearly six to one on the New York Stock Exchange, and the S&P 500’s technology sector dropped 7.3%, its worst day since March 2020.
“Thursday’s selling had the hallmarks of capitulation,” the deVere CEO explains.
“When the fear gauge spikes and almost every stock falls together, forced sellers tend to be clearing out. Moments like this have often marked the point where patient money starts moving back in.”
The pain runs deep. Around a third of S&P 500 stocks sit 20% or more below their 52-week highs, including Alphabet, Nvidia, Oracle and Micron. In the Nasdaq-100, the figure is closer to 60%, with CoreWeave and Arm Holdings among the casualties.
“Some of these companies deserve their discount, and some don’t,” says Nigel Green. “Investors will need to ask tougher questions of every tech giant. Who owns the customer? Who has secured power for their data centres? Who is turning AI spending into revenue today?
“Membership of an exclusive club won’t carry a stock anymore. Delivery will.”
Early signs of a rebound emerged within hours. Nasdaq 100 futures rose around 1% in early Friday trading, with Nvidia, Micron and AMD bouncing after hours as Wall Street awaited the October jobs report.
“Dip buyers are likely to be out in force,” he notes. “The wobbles will probably continue for a while, but the case for AI remains intact. Demand for computing power keeps climbing and the technology keeps getting better.”
The deVere CEO believes the rout will ultimately leave Big Tech stronger. “Corrections like this squeeze out excess and reward discipline. The super pack will likely keep leading the AI boom, though the pecking order at the top may shift.
“A sharper, more selective market should make the next stage of its run far more durable than the last.” South African Rand Weakens as US Dollar Hits 18-Month High
