Tech Market Cap Losses

SOURCE www.cnbc.com
Tech's megacap companies lost about $1 trillion in market cap as U.S. markets opened for trading on Monday, deepening a downturn that sent the Nasdaq into correction territory last week. Nvidia, Apple, and Amazon were among the companies that experienced significant market cap losses.

Key Points

  • Tech's megacap companies lost about $1 trillion in market cap
  • Nvidia's market cap surpassed $3 trillion before dropping below $2.5 trillion
  • Investors have been getting nervous about the tech sector for weeks
  • Nvidia reports earnings later this month with strong revenue growth

Pros

  • Nvidia briefly became the world's most valuable company
  • Nvidia reports strong revenue growth in excess of 200%

Cons

  • Concerns about a potential overinvestment in AI have been raised
  • Analysts warn of a 'bubble' in the AI sector