Big tech stocks lose billions as AI spending fears hit valuations

• Microsoft lost approximately $613 billion in market value amid concerns about AI business risks and competition from Google's Gemini and Anthropic's Claude, with its valuation dropping to $2.98 trillion
• Amazon's market cap fell by $343 billion (down 13.85%) to $2.13 trillion after announcing capital spending would jump more than 50% this year
• The shift reflects changing investor sentiment from rewarding long-term AI ambitions to demanding near-term earnings visibility, while TSMC, Samsung, and Walmart collectively added $746 billion in market value

Summary: Big Tech Stocks Lose Billions Amid AI Spending Concerns

Major technology companies have experienced significant market value declines in early 2026 as investor sentiment shifts from embracing long-term AI investments to demanding immediate returns on substantial capital expenditures.

Key Losses

Microsoft suffered the largest decline, losing approximately $613 billion in market capitalization, reducing its valuation to $2.98 trillion as of Friday. The drop follows concerns about AI business risks and intensifying competition from Google's Gemini model and Anthropic's Claude Cowork AI agent.

Amazon shed 13.85% year-to-date, erasing roughly $343 billion in value to reach $2.13 trillion. The company announced plans to increase capital spending by over 50% this year, contributing to investor anxiety.

Other tech giants also posted substantial losses:

• Apple: down $256.44 billion to $3.76 trillion
• Nvidia: down $89.67 billion to $4.44 trillion
• Alphabet: down $87.96 billion to $3.7 trillion

Market Implications

The selloff represents a fundamental shift in market psychology. After years of speculative enthusiasm rewarding AI ambitions, investors now prioritize near-term earnings visibility over long-term technology bets and heavy infrastructure spending.

Winners

In contrast, several companies gained substantial value:

• TSMC: added $293.89 billion (valuation: $1.58 trillion)
• Samsung Electronics: added $272.88 billion (valuation: $817 billion)
• Walmart: added $179.17 billion (valuation: $1.07 trillion)

This divergence suggests investors are rotating toward companies with more predictable returns and established business models while reassessing the risk-reward profile of AI-focused tech giants.