Magnificent 7's $1T wipeout ends the group trade, not the AI boom, Devere CEO says

Relief didn't take long. By 9:42 a.m. EST on Nov. 6, Nvidia had clawed back 6.9% and Tesla was up 2.8%, with Meta adding 2.5%, Alphabet 2.3% and Amazon 1.1%. Apple and Microsoft were still in the red, down 1.3% and 1.1% respectively. The bounce came after a brutal session that stripped more than $1 trillion off the group's value in a single day.

Nov. 5 was ugly everywhere. Tesla sank 10.77% and Nvidia fell 9.26%, while Meta dropped 3.96%, Microsoft lost 3.58%, Alphabet fell 2.20%, Amazon slid 2.19% and Apple declined 1.53%. The S&P 500 lost 4.4% and the Nasdaq 5.5%, the Dow Jones Industrial Average fell 1,833 points, and all 11 S&P 500 sectors closed lower.

Nigel Green, CEO of financial advisory firm Devere Group, isn't buying the obituary. In comments sent to Bitcoin.com News on Nov. 6, he said wiping $1 trillion off the tech super pack in a day naturally makes people ask whether its reign is over — and his answer is no. What's finished, he said, is the habit of buying all seven as one trade. From here, he expects each company to be judged on its own numbers, with many investors treating the sell-off as a chance to buy the dip.

Politics added fuel. AI stocks came under pressure on concerns that Democratic victories in the midterm elections could lead to moratoriums on data centers. Financing costs are another wrinkle: a Nov. 2 Bitfinex analysis flagged growing worries about borrowing costs and a heavier reliance on credit to fund capital spending. Green's own checklist for tech companies comes down to customer ownership, secured electricity supplies and revenue actually generated by AI spending.

Green read the selling as capitulation. He pointed to a spike in the VIX, which measures expected S&P 500 volatility over the next 30 days, plus widespread share declines, as signs that forced sellers were clearing positions. Crypto took hits too — bitcoin traded near $75,249 on Nov. 6 after touching $74,762, roughly 11.3% below the $84,843 level it reached in late October. Michael Saylor's tally put bitcoin's Nov. 5 decline at about 5%.

Green expects more volatility ahead but says demand for computing power keeps growing. His longer view: the super pack will likely keep leading the AI boom, perhaps with a different pecking order at the top. Corrections like this, he said, squeeze out excess and reward discipline — and a sharper, more selective market should make the next stage of the run far more durable than the last.