Monday morning is shaping up to be another dreary market day, but the pain won’t be evenly felt amongst Magnificent 7 stocks. Here’s where each stock stands in premarket trading:

• NVIDIA (Nasdaq: NVDA): Down 4.89%
• Apple (Nasdaq: AAPL): Down 3.22% 
• Amazon (Nasdaq: AMZN): Down 2.23%
• Meta Platforms (Nasdaq: META): Down 2.65%
• Alphabet (Nasdaq: GOOGL): Down 1.56% 
• Tesla (Nasdaq: TSLA): Down 6.23%
• Microsoft (Nasdaq: MSFT): Down 1.83% 

Some of these stocks are sinking more than the broader futures average. S&P futures are projecting a -2.69% decline while Nasdaq futures imply a -2.75% decline as of 9:15 a.m. ET. 

Let’s focus in on why some Magnificent 7 stocks are getting hit so hard. 

NVIDIA: A Bloodbath in Cyclicals

Amongst Magnificent 7 stocks, NVIDIA is the only semiconductor stock. That’s a bad spot to be in because semiconductors are cyclical and generally see significantly worse declines when the economy enters a previously unexpected recession. 

Last night semiconductors saw some of the worst selling when Japan’s markets opened. Aside from Tesla, it looks like NVIDIA will see the biggest declines today. 

On the bright side, NVIDIA’s trailing P/E stands at 32X and even with a recession, the company should post strong growth in 2025. If you believe in the long-term potential of AI, NVIDIA looks like a screaming buy here. However, you will have to continue tolerating extremely volatile markets in the near term. 

Microsoft: The Safe Haven in a Storm?

If you own Microsoft, it likely doesn’t feel like the company is outperforming. The stock is down 14% year-to-date and is down about 2% in premarket trading. Yet, Microsoft is increasingly becoming the ‘safe haven’ amongst Magnificent 7 stocks and seeing the lowest declines. 

One reason for that is moderate impacts from tariffs. While Amazon and Microsoft will both see demand reductions to their cloud computing business if a recession hits, Amazon faces more exposure thanks to its advertising business (very cyclically exposed) and also its e-commerce operations (impacted by tariffs). 

If you’re wanting to move money into the market to be opportunistic but want to limit your downside, Microsoft is looking very interesting here. 

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