AI Spending Concerns Wipe Billions Off Big Tech

Major technology companies have seen sharp declines in market value in 2026 as investors grow wary of whether massive artificial intelligence investments will deliver adequate financial returns.

Microsoft shares have dropped around 17% this year amid concerns about rising competition and risks tied to its AI strategy, erasing roughly $613 billion from its valuation.

Amazon has also lost nearly 14% of its value, shedding about $343 billion as the company signaled plans to increase capital spending by more than 50% to support its AI ambitions.

Other leading tech firms have faced similar setbacks. Nvidia, Apple and Alphabet collectively lost hundreds of billions in market value as investors shifted focus from long-term AI potential to nearer-term profitability.

The trend reflects a broader change in market sentiment, with investors demanding clearer earnings visibility after years of enthusiasm around AI-driven growth.

Meanwhile, companies tied more directly to hardware and infrastructure such as TSMC and Samsung, along with retail giant Walmart, have seen their valuations rise significantly over the same period.