Big tech’s “Magnificent Seven” companies – a group consisting of Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Meta Platforms – have seen their combined market value plunge by $4.2 trillion (€3.7tn), or 24%, since Donald Trump’s inauguration through to Monday.
The financial damage was more severe a few days after Trump’s 2 April unveiling of sweeping reciprocal tariffs due to the heavy toll on Big Tech’s supply chains in China and other key markets around the globe.
A temporary freeze on the majority of the most punitive tariffs and an exemption from most of the fees on electronics coming in from China has provided some relief, but Trump has made it clear the reprieve may be short-lived.
That has left the spectre of Trump’s ongoing trade war hanging over the big tech companies, whose influence extends around the world.
“The mass confusion created by this constant news flow out of the White House is dizzying for the industry and investors and creating massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand,” Wedbush Securities analyst, Dan Ives, said.
Nvidia absorbed a significant setback last week when the Trump administration banned it from selling one of its popular AI chips to China, prompting the company to record a $5.5 billion (€4.8bn) charge to account for the stockpile of processors that it intended to export to the country.
Tech CEOs will get a chance to discuss the fallout from the trade war and other challenges still ahead during analyst conference calls that will be held as part of their companies’ financial reports for the January-March quarter.
The earnings will kick off Tuesday when Tesla is scheduled to release its full financial report after already revealing that its first-quarter car sales dropped by 13% from the same time last year.
The decline occurred against a backdrop of vandalism, widespread protests and calls for a consumer boycott amid a backlash to Musk’s high-profile role in the White House overseeing a cost-cutting purge of US government agencies.
After Musk discusses his strategy for reversing a 47% decrease in Tesla’s market value since he joined Trump in the White House, Google parent Alphabet Inc. is scheduled to announce its results on Thursday. Then four of the Magnificent Seven will get their turn next week: ; Meta and Microsoft on 30 April; and Amazon and Apple on 1 May.
Nvidia, which operates on a fiscal year ending in January, is scheduled to wrap things up on 28 May with the release of its quarterly results.
