Big Tech Stocks Slump Amid AI Spending Concerns
Tech giants Amazon, Nvidia, Meta, and Alphabet led a $1.3 trillion market rout on Monday as investors questioned the sustainability of AI investments. The sector's worst performance in 2026 contrasts sharply with booming energy stocks, signaling a shift toward short-term financial transparency over speculative AI bets.
Nvidia (-2.25%), Meta (-1.60%), and Alphabet (-1.25%) paced the declines as analysts scrutinized whether $700 billion in infrastructure spending can deliver adequate returns. Even Microsoft (-0.15%) and Apple (-2.30%) couldn't escape the selloff, though Amazon's dip (-0.50%) proved relatively modest.
The selloff reflects growing market skepticism about AI's near-term profitability. With software titans aggressively funding AI development, some investors appear to be repositioning into more immediately quantifiable opportunities elsewhere in the market.
