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On August 6, due to concerns about the US economic recession andBerkshire HathawayApple and other tech giants were hit by a massive sell-off on Monday after Berkshire Hathaway announced it was selling half of its stake in Apple. Apple, Tesla, Google's parent company Alphabet and Amazon'sshare priceBoth fell more than 4%, while Nvidia and Microsoft fell 6.36% and 3.27% respectively, and Facebook's parent company Meta fell 2.54%. These companies have exacerbated the negative market sentiment due to their large-scale investments in AI infrastructure.

Relevant data shows that the seven technology giantsstockThe market value loss is close to $800 billion.

"It can be said that people's expectations for the so-called 'Magnificent Seven' are too high." Dan Coatsworth, an investment analyst at AJ Bell, pointed out that these seven companies are regarded as impeccable by investors because of their outstanding performance. But once the performance is poor, the market reaction is very intense. In addition, due to the weak non-farm payrolls report released by the United States last Friday, coupled with the market's expectation that the Federal Reserve may have to cut interest rates quickly to avoid a recession, investors have sought safe assets, and US stocks have suffered a heavy blow for three consecutive days. Chip stocks generally fell, and the Philadelphia Semiconductor Index (PHLX) fell 2.6%, with a cumulative decline of 14% in three days.

Over the weekend, Berkshire Hathaway, led by Warren Buffett, said it had halved its stake in Apple, adding to concerns about the outlook for the tech sector. Meanwhile, reports from the Information and the Financial Times that design flaws and production issues with Nvidia's new AI processor could delay its launch further hit Nvidia's stock price.

After driving Wall Street's rally for more than a year, big stocks have been under pressure in recent weeks.TechnologyThe pressure is on because of concerns that building data centers optimized for AI will cost more than expected and that the return on investment may take longer to realize.

The three cloud computing giants, Amazon, Microsoft and Alphabet, have seen their share prices fall as recent earnings reports showed that huge investments in AI could affect profits.

Despite the overall market pressure, Nvidia's stock price has doubled this year. Microsoft and Amazon's stock prices have increased by 5% this year, Apple's by 7%, while Tesla's stock price has fallen by 21%.

Dan Ives, an analyst at Wedbush Securities and a long-time tech bull, said now may be an opportunity for investors to buy large-cap tech stocks at more attractive valuations, as their AI investments are expected to deliver long-term returns and their positions in the market are solid. He stressed that for many years he has been guiding investors to respond rationally to the irrational sell-off in global markets and hold the best tech stocks.

(Chenchen)