Market rout inflicts $1 trillion loss on mega-cap tech companies.

• At the start of trading on Monday, the seven most valuable U.S. tech companies experienced a combined loss of $1 trillion in market value.
• The Nasdaq, which is heavily reliant on technology, experienced a decline of over 3% after experiencing its steepest three-week slide in two years.
• Nvidia fell about 6% and Apple was down more than 4%.

On Monday, as U.S. markets began trading, tech's largest companies experienced a loss of approximately $1 trillion in market value, exacerbating the downturn that pushed the Nasdaq into correction territory the previous week.

At the opening bell, the chipmaker's market cap dropped by more than $300 billion, but it quickly recovered about half of its loss. Shares of the chipmaker were down 7% just after 10 a.m. ET. Additionally, the valuation of the chipmaker plummeted $224 billion and $109 billion, respectively, at the market open.

The seven most valuable tech companies lost $995 billion in the early moments of trading, with steep declines in , , and . However, they bounced back some as trading progressed.

On Monday, markets fell broadly, with Japan's Nikkei 225 down 12% and Bitcoin plummeting 11%, leading a selloff in cryptocurrency and related stocks. Concerns about a recession stemming from disappointing economic data last week pushed the market decline.

For weeks, investors have been feeling uneasy within technology. Last week, the Nasdaq dropped 3.4%, marking its worst three-week period in two years. Reports from Amazon, Alphabet, and Microsoft caused concern among their peers, leading to a slide in the market.

Recently, there has been a significant shift in investor sentiment regarding the artificial intelligence infrastructure of Meta and Google.

Nvidia, a lesser-known company, gained the most from the AI boom due to its powerful graphics processing units. The company's market cap reached $3 trillion, surpassing Microsoft and Apple to become the world's most valuable company. However, its market cap is now below $2.5 trillion.

Recently, some analysts have raised concerns about the possibility of overinvesting in AI.

In June, a widely-read note cautioned that large companies with high AI spending were not seeing significant results. According to reports, Elliott Management, a prominent hedge fund, told clients that Nvidia was in a "bubble" and the AI hype was exaggerated.

Nvidia will reveal its earnings this month, with the company having achieved revenue growth of over 200% in the past three quarters.

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