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AI Spending · Market Pullback · Semiconductors · Tech Stocks
U.S. technology megacaps, including Alphabet, Amazon.com, Meta Platforms, and Microsoft, collectively lost over $500 billion in market value on Monday as investors grew anxious over the massive capital expenditures required for AI infrastructure without clear evidence of justifying returns.
SpaceX slid over 10% after its post-IPO rally, announcing a notes offering. Alphabet dropped 6%, erasing over US$256 billion in market capitalization, exacerbated by Google DeepMind's senior research scientist, John Jumper, departing for AI startup Anthropic.
Amazon.com lost 4.8%, while Meta Platforms and Microsoft eased around 3% each, contributing to a combined loss of over $248 billion for the three. David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, attributed the pullback to "ongoing anxiety over tech companies’ massive capital spend on the AI infrastructure." In contrast, chip-related stocks, particularly memory chipmaker Micron Technology, gained 5.8% to hit record highs, benefiting from robust AI-related demand and a strategic agreement with Anthropic.
Wagner highlighted the market's distinction between "those who are receiving the checks, like memory names and those who are writing the checks."
AI Spending Concerns Drive Megacap Tech Stock Retreat(current)
