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Tech Giants Tumble Amid AI Investment Scrutiny
16 Feb
Summary
- Microsoft's value dropped by $613 billion due to AI business concerns.
- Amazon expects capital spending to jump more than 50% this year.
- Investor sentiment shifted from AI ambitions to near-term earnings.
- Nvidia, Apple, and Alphabet also saw significant market value declines.
The market values of the world's leading technology companies have sharply declined this year, reversing years of substantial growth. Investors are now questioning whether significant investments in artificial intelligence will yield sufficient returns to justify their current high valuations.
Microsoft's shares have fallen around 17% year-to-date, shedding approximately $613 billion from its market value. This downturn is attributed to concerns regarding risks within its AI business and increased competition from rivals like Google and Anthropic.
Similarly, Amazon has seen its market value decrease by about 13.85% so far this year, with the company announcing an expectation for capital spending to rise by over 50% in the current year.
Other tech giants including Nvidia, Apple, and Alphabet have also experienced considerable drops in their market capitalizations since the beginning of 2026. This pullback signifies a notable shift in market sentiment, moving from prioritizing long-term AI ambitions to demanding immediate earnings visibility.
In contrast, companies such as TSMC, Samsung Electronics, and Walmart have seen their market values increase over the same period, adding substantial billions to their respective valuations.
