Big tech stocks lose billions of dollars due to fears over AI spending

Following years of enormous gains, the market value of the most expensive technology stocks in the world experienced steep drops as investors questioned if significant investments in AI would yield enough returns to support high valuations.

Because of growing competition from Google’s latest Gemini model and Anthropic’s AI agent Claude Cowork, as well as worries about risks to its AI business, Microsoft’s shares have dropped about 17% so far this year. As of Friday, the company’s market value had dropped by about $613 billion to about $2.98 trillion.

Nvidia, Apple, and Alphabet also saw their market value fall by $89.67 billion, $256.44 billion, and $87.96 billion, respectively, since the beginning of 2026, to $4.44 trillion, $3.76 trillion, and $3.7 trillion.

This decline signals a broader shift in market sentiment, as investors moved from rewarding long-term ambitions in AI to demanding visibility on near-term earnings after years of speculative enthusiasm. Nvidia, Apple, and Alphabet also saw their market value fall by $89.67 billion, $256.44 billion, and $87.96 billion, respectively, from the beginning of 2026, to $4.44 trillion, $3.76 trillion, and $3.7 trillion.