More than $1 trillion in market value has been erased from major technology firms over the past week as investor concerns over heavy artificial intelligence spending triggered a broad sell-off.
Shares of Microsoft, Nvidia, Oracle, Meta, Amazon, and Alphabet all declined through Thursday's close after earnings reports pointed to sustained and substantial capital expenditures by hyperscale companies.
In premarket trading Friday, Amazon dropped 7%, Alphabet slipped 0.7%, and Meta was mostly flat. Meanwhile, Oracle, Nvidia, and Microsoft posted modest gains in the low single digits.
According to the Financial Times, leading tech firms plan to invest about $660 billion in AI this year.
Amazon, in particular, announced Thursday massive capital expenditures of around $200 billion for 2026 in the AI field.
Investors worry the firm's heavy investment in AI infrastructure will weigh on near-term profit margins. The tech sell-off also dragged down other major industry players following similar spending announcements.
Thursday's decline marked one of the steepest single-day drops for Amazon in recent months.
In contrast, Apple, which has been under pressure from Wall Street over its AI roadmap and has pledged significantly lower capital spending than its Big Tech peers, has seen its shares climb 7% since Monday, fueled by what CEO Tim Cook called "staggering" demand for the iPhone.
