Tech Giants Lose Trillions Amid AI Investment Concerns
Shares of Microsoft, Nvidia, Oracle, Meta, Amazon, and Alphabet all fell by Thursday’s closing bell after earnings reports highlighted sustained and considerable capital outlays by hyperscale firms.
In premarket trading on Friday, Amazon fell 7%, Alphabet edged down 0.7%, and Meta remained largely unchanged. Meanwhile, Oracle, Nvidia, and Microsoft recorded modest increases in the low single digits.
According to Financial Times, top tech corporations intend to pour approximately $660 billion into AI initiatives this year.
Amazon, specifically, disclosed on Thursday enormous capital spending of roughly $200 billion for 2026 in the AI sector.
Investors are concerned that the company’s substantial investment in AI infrastructure could pressure short-term profit margins. The tech downturn also pulled other major industry participants lower following comparable expenditure announcements.
Thursday’s retreat represented one of the sharpest single-day losses for Amazon in recent months.
By contrast, Apple, which has faced scrutiny from Wall Street over its AI strategy and has committed to significantly lower capital spending compared with its Big Tech counterparts, has seen its stock rise 7% since Monday. The increase has been driven by what CEO Tim Cook described as “staggering” demand for the iPhone.
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