'Magnificent Seven' rebounds, Nvidia leads the charge

The "Magnificent Seven" - Amazon (AMZN), Apple (AAPL), Alphabet (GOOG, GOOGL), Nvidia (NVDA), Meta (META), Microsoft (MSFT), and Tesla (TSLA) - which sustained heavy losses of around $653 billion in a recent sell-off on Monday, is already rebounding from some of those losses with chip giant Nvidia leading the charge.

Morning Brief Anchors Brad Smith and Seana Smith break down the data surrounding the big moves.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Nicholas Jacobino

Video Transcript

Well, taking a look at the magnificent seven trade this morning.

We're looking at green on the screen right now, pre market stocks looking to recoup losses tied to a global sell off.

Altogether.

The mag seven stocks added over $150 billion in market cap on Tuesday, but that's not quite recovering from the $650 billion plunge on Monday, but certainly pulling them on the road to recovery.

NVIDIA the leader again today.

That's up around 2.5%.

Of course, NVIDIA, uh, name in the mag seven that doesn't report until later on in the earning season.

August 28th is when we're gonna be watching for that report and particularly here looking through some of the expectations going into that, uh, Morningstar actually saying that they're encouraged by the management's commentary to, uh, commentary, Uh, that demand for its upcoming Blackwell products should exceed supply into calendar 2025 and they see no signs of A I demand slowing either.

But remember earlier this week, DD A Davidson was also commenting on that same matter in the Blackwell chip and really making sure that it was well known that that's likely to be a short lived, uh, and have limited type of impact on the stock right now.

You know, it's interesting.

I just got a Piper Sandler's, uh, note here this morning in my inbox on NVIDIA, and they're still remaining optimistic.

They're saying that the recent pullback that we've seen in NVIDIA and even after yesterday, some of yesterday's buying action they're seeing an opportunity given that recent pullback.

And they mentioned the fact that they believe that NVIDIA, regardless of the fact that maybe we are going to see some sort of delay in Blackwell chips that fundamentally, they say, NVIDIA remains the strongest player in the A I accelerator space, with an estimated share of 80% of the merchant market by 2028.

So, I, I think that line right there just really encapsulates how big of a how much of a dominant player NVIDIA has been continues to be is expected to be here over the coming years in the A I space and then also speaks to a lot of that excitement or validate some of that excitement that we had seen obviously a lots of excitement, I guess, in the stock over the last couple of quarters.

So again, yes, we have seen a pullback, obviously, from those highs.

Yes, we did see some buying action yesterday.

And I think the note here from Piper Sandler kind of goes with what you were just talking about, where many on the street are advised, or at least to see this recent pullback as a buying opportunity, just given the fundamentals of NVIDIA's business and the expected demand and what that trajectory of growth, uh, looks like here over the coming quarters.