Markets are attempting to recover Tuesday following global equities’ massive pullback, which cost the Mag 7 stocks roughly $1.3T in market cap over the last three trading sessions. At its session lows, Nvidia  (NVDA) shares were down as much as 13% during Monday’s session and have pulled back roughly 29% from all-time highs of $140.76. However – important to keep in mind – Nvidia still remains the 2nd best performer in the S&P 500 this year, +107% YTD (just behind SuperMicro Computer’s (SMCI) +111% rally).

Nvidia’s weakness wasn’t entirely to blame on the macro. The Information reported that Nvidia’s next-generation A.I. Blackwell chips would be delayed by three months, which could have broader implications on some of its most important customers like Microsoft (MSFT), Alphabet (GOOGL), and Meta (META). A major portion of the Mag 7’s capex is slated to go directly to Nvidia currently. Microsoft now makes up roughly 19% of Nvidia’s revenue, followed by Meta’s 10%, Alphabet’s 7%, Amazon’s (AMZN) 6%, and Tesla’s (TSLA) 3.3%.

Following most of the Mag 7 earnings in which capex was highly scrutinized, the Street gained insight into the dollars and cents being shelled out by big tech to quickly build out data centers. If Nvidia is forced to miss out on some of that business due to its own delays, it could have a potential impact. It was also reported Tuesday morning that Nvidia and its leading supplier, Taiwan Semiconductor (TSM), are encountering production issues, which could further delay shipments planned for later this year. Per the Financial Times, Nvidia’s latest designs utilize Taiwan Semi’s manufacturing process and have faced issues in the upcoming Blackwell family of data center chips. Although most of the tech heavyweights have already provided their quarterly update, Nvidia is still ahead… it is expected to report its 2Q numbers on Wednesday, Aug. 28 after the closing bell.

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