A group of ten of the world’s most influential artificial intelligence and semiconductor companies lost a combined $1.64 trillion in market value over seven trading days between October 29 and November 7, 2025, in one of the sharpest pullbacks of the AI boom to date.
The losses — spanning Nvidia, Microsoft, Meta, Broadcom, Oracle, TSMC, AMD, Palantir, Apple and ASML — rattled markets globally, given the companies’ central role in the AI hardware and software supply chain. The sell-off erased an amount nearly equivalent to the entire Spanish stock market and almost half the market capitalisation of Canada.
Nvidia saw the steepest decline, shedding roughly $459 billion, followed by Microsoft ($333 billion) and Meta ($321 billion). Broadcom lost an estimated $173 billion, while Oracle, TSMC, AMD, Palantir, Apple and ASML recorded declines ranging from $21 billion to $102 billion.
The downturn came amid a broader tech-sector slump as investors reassessed whether the nearly two-year surge in AI-linked valuations had overshot fundamentals. Analysts pointed to a series of catalysts behind the sudden reversal. Alphabet’s reported push to supply its home-grown TPUs directly to major customers, including Meta, intensified concerns about rising competition in the AI chip market. Washington’s decision to further tighten export controls on advanced processors bound for China added additional pressure on chipmakers and manufacturing partners.
The sell-off was further fuelled by profit-taking after significant gains, as well as renewed questions about whether massive AI-related capital expenditure will translate into near-term earnings. Some AI software firms, including Palantir, had recently signalled slower-than-expected contract growth, adding to investor unease.
Despite the declines, all ten companies remain among the world’s most valuable corporations, reflecting the continued strategic importance of AI computing infrastructure. The episode underscored, however, how concentrated global equity markets have become; with mega-cap AI stocks now representing an outsized share of major indices, volatility in a handful of companies can move markets worldwide.
Within weeks of the sell-off, Nvidia’s stronger-than-expected quarterly results helped stabilise sentiment, though analysts say the correction served as an early reminder of the risks that accompany rapid technological transitions and elevated valuations in the AI sector.
