Wall Street's tech unwind accelerated Thursday, erasing more than $500 billion in market value across 10 heavyweight names.



But unlike recent pullbacks triggered by broad-based software stocks selloff, Thursday’s fall also hit legacy hardware giants. 



According to Coinmarketcap.com, here are the 10 largest single-day market cap loss within the tech sector on Thursday:



<ul>
<li>Apple Inc. (NASDAQ:AAPL): -$200.04 billion, after falling 5% – the worst single-day drop since Liberation Day. </li>



<li>Tesla Inc. (NASDAQ:TSLA): -$52.28 billion</li>



<li>Amazon.com Inc. (NASDAQ:AMZN): -$51.08 billion</li>



<li>Broadcom Inc. (NASDAQ:AVGO): -$41.77 billion</li>



<li>Cisco Systems Inc. (NASDAQ:CSCO): -$39.42 billion</li>



<li>Meta Platforms Inc. (NASDAQ:META): -$35.19 billion</li>



<li>Taiwan Semiconductor Manufacturing Co. (NYSE:TSM): -$30.85 billion</li>



<li>AppLovin Corp. (NASDAQ:APP): -$28.05 billion</li>



<li>NVIDIA Corp. (NASDAQ:NVDA): -$20.82 billion</li>



<li>Palantir Technologies Inc. (NYSE:PLTR): -$19.54 billion </li>
</ul>



<h2>Why Are Tech Stocks Falling?</h2>



Fears over AI disruption continue to rattle the software sector. 



The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) dropped more than 3% Thursday, revisiting lows last seen last week. Year to date, the industry is down over 20%.



But Thursday's broader tech slump had a clear catalyst: Cisco earnings



Cisco plunged 11% despite topping expectations. The company reported earnings of $1.04 per share, beating the $1.02 consensus. 



Revenue came in at $15.35 billion, above estimates of $15.11 billion, supported by strength in networking.



The problem was margins.



Goldman Sachs analyst Michael Ng highlighted that Cisco’s networking revenue grew 21% year over year and orders accelerated above 20%. Yet fiscal third-quarter gross margin guidance of 65.5%-66.5% missed the 68% consensus, reflecting a heavier hardware mix and higher commodity costs. 



Management cited memory inflation and pledged pricing actions and long-term supply agreements through fiscal 2026.



Then China’s tech giant Lenovo confirmed the risk of mounting pressure on PC shipments amid worsening memory shortages.



CEO Yang Yuanqing told Reuters on Thursday the company expects unit pressure but aims to maintain profitability.



Peers Dell Technologies Inc. (NYSE:DELL) and HP Inc. (NYSE:HPQ) plunged 10.2% and 7%, respectively, highlighting that rising input costs and supply strains are now competing with AI disruption risks as dominant drags in tech market.



Image: Shutterstock

Meta Q4 Earnings

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Tech giants, including Apple and Nvidia, lost over $500 billion in market value on Thursday due to Cisco's weak margin outlook and ongoing memory shortages. Apple's market cap fell by $200 billion, marking its worst single-day drop since Liberation Day. The decline was exacerbated by fears of AI disruption, with Cisco's earnings report revealing lower-than-expected gross margin guidance. Other companies like Tesla, Amazon, and Meta also faced significant losses, as rising input costs and supply chain issues compounded the sector's challenges.

- Wall Street faced a significant tech downturn on Thursday, resulting in a loss of over $500 billion in market value across ten major companies.  
- This decline affected both software and legacy hardware firms, with Cisco's earnings report acting as a key catalyst for the broader slump.  
- Factors contributing to the fall included concerns about AI disruption, supply chain issues, and disappointing margin guidance from Cisco despite beating revenue estimates.

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