This year, the most expensive technology stocks in the world have seen steep drops in market value as investors doubt that significant investments in AI would provide enough profits to support exorbitant valuations. The combined market valuation of Apple, Alphabet, Nvidia, Amazon, and Microsoft has dropped by over $1.3 trillion since January 2026.
Which Tech Stocks Have Been Hit Hardest?
This turnaround is indicative of a broader shift in investor perception, as they are now more interested in short-term financial transparency than long-term AI objectives. The sell-off has wiped roughly $613 billion off Microsoft’s market value, leaving it at about $2.98 trillion as of Friday.
Amazon has shed around 13.85% so far this year, erasing about $343 billion in market value. The company is now valued at roughly $2.13 trillion. Nvidia has seen its market value decline by $89.67 billion since the start of 2026, to $4.44 trillion.
Apple has lost $256.44 billion, dropping to $3.76 trillion. Alphabet has shed $87.96 billion, now valued at $3.7 trillion.
Why Are Investors Selling Big Tech Stocks?
The reversal reflects a more general change in investor sentiment, as they are now seeking immediate financial transparency rather than rewarding long-term AI goals. This represents a substantial shift from years of speculative exuberance that drove tech values to new highs.
The concern centers on whether massive capital spending on AI infrastructure will generate sufficient returns to justify current stock prices.
What Did Amazon Say About Spending?
Amazon announced earlier this month that it expected its capital investment to increase by more than 50% this year. This announcement fueled investor fears about rising prices in the IT sector.
Amazon’s spending plans reflect the fierce rivalry in AI development, but investors are concerned about when these expenditures will yield profits.
How Is Competition Affecting Microsoft?
Microsoft is facing significant competition from Google’s new Gemini model and Anthropic’s Claude Cowork AI agent. These competitive pressures are threatening Microsoft’s AI division, which has been a significant growth driver and valuation support.
Investors are concerned that rising competition may reduce profits and hinder the uptake of Microsoft’s AI solutions.
Which Companies Are Gaining While Tech Falls?
Taiwan Semiconductor Manufacturing Co (TSMC) has added $293.89 billion in market value over the same period. TSMC’s valuation now stands at approximately $1.58 trillion. Samsung Electronics has gained $272.88 billion, lifting its market cap to $817 billion.
Walmart has added $179.17 billion in market value, reaching $1.07 trillion. These gains contrast sharply with Big Tech losses, suggesting investors are rotating into different sectors and geographies.
Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources. Past performance does not guarantee future results. Investors should conduct their own research.
