On August 5, 2026, the stock market reported significant movements due to comments made by Elon Musk regarding Nvidia. Musk announced that his companies would exclusively use Nvidia chips, benefiting Nvidia but negatively impacting its competitors. AMD saw a steep decline of 8.7%, making it the worst performer in the S&P 500 despite a strong earnings report. Intel also experienced a drop of 2%, while Nvidia's stocks rose by 2%.

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Stock Market News From Aug. 5, 2026: Dow Rises and Weathers Mag 7 Slide

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AI and Chip Stocks Drop After Musk's Nvidia Bombshell

George Glover

Investors were once again trying to make sense of comments from Elon Musk on Wednesday, after the SpaceX CEO said his rocket and AI company would exclusively use Nvidia chips from now on.

That's good news for Nvidia, but bad news for the $5 trillion semiconductor giant's biggest rivals.

AMD was the S&P 500's worst performer ahead of the opening bell, slumping 8.7% as Musk's announcement overshadowed a second-quarter earnings beat. Fellow graphics processing unit maker Intel slipped 2%. Nvidia's own shares climbed 2%.

Read Original at Barron's →