Adapted by:
Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
The year started well for Nvidia. On January 29, 2025, its capitalization reached $3.49 trillion, and everything seemed to be going smoothly. The surprise arrival of DeepSeek R1 changed things drastically, and combined with other factors, led to a spectacular plunge. Two months later, Nvidia’s market cap is $2.77 trillion, a drop of almost 21%. The effect was contagious, but one tech giant is weathering the storm.
Apple. On January 25, 2025, Apple’s market cap was $3.55 trillion. Today, it’s worth $3.35 trillion, down 5.6%. This is a significant decline, of course, but much less than its peers in the “Magnificent Seven.”
Not so magnificent. In addition to Nvidia’s fall, Microsoft, Alphabet, Amazon, Meta, and Tesla have all dropped, with Apple being the only one that has escaped relatively unscathed. The “Magnificent Seven” have seen an average market cap decline of 13.5% over the last two months. Together, they’ve lost more than $2 trillion compared to their combined $15.58 trillion valuation at the end of January—a staggering downturn.
It’s not just DeepSeek. The impact of DeepSeek isn’t the only factor contributing to these declines. President Donald Trump’s recent tariffs on various imported products—foreign cars being the latest victims—have played a major role. These tariffs, along with Trump’s protectionist policies, are forcing many companies to rethink their strategies. The consequences are clear to both investors and consumers: price hikes across the board.
Why is Apple holding up? Among the major tech companies, Apple has managed to mitigate its losses the most. This is likely due in part to its “lukewarm” approach to AI development. Its involvement in the data center race is minimal, and despite recent criticism, it isn’t “burning money” like other companies in the sector. The rest of the group has invested massive sums in AI systems, though some are now slowing down.
Is a bubble in sight? These days mark the 25th anniversary of the dot-com bubble, and the turmoil in big tech and the AI sector has raised concerns about an AI bubble. There are certainly similarities, but also key differences.
Apple is especially solid. This company has historically been more resilient than its peers in financial downturns. Despite criticism over a perceived lack of innovation, Apple has successfully diversified its revenue—particularly through its expanding services sector—and continues to maintain the confidence of both investors and consumers.
Image | Hussam Abd (Unsplash)
Related | The Jewel in Apple’s Crown Isn’t Its Products, but Its Credibility. The Company Just Threw It Away
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