About $1.2 trillion wiped out as US tech stocks slump over rising AI spending
As AI reshapes business models across the technology sector, the selloff in US technology stocks stretched into a fourth straight trading session, wiping about $1.2 trillion from the sector's market value.
Nasdaq 100 index extended its decline overnight, with Tesla leading losses after tumbling more than 16 per cent over the past four trading sessions.
Moreover, Sandisk, T-Mobile, Meta Platforms, Alphabet and Amazon fell between 7 per cent and 10 per cent over the same period, according to reports.
Investors questioned rising AI spending, weaker-than-expected earnings and higher capital expenditure plans from some of the world's biggest companies, the report added.
The tech decline also pushed Nvidia lower, allowing Apple to reclaim the title of the world's most valuable listed company for the first time since April 2025.
Nvidia shares fell 5 per cent on Monday (US time), reducing the chipmaker's market value to $4.77 trillion. This enabled Apple to finish the session ahead of Nvidia by market capitalisation.
According to reports, the latest selloff gathered pace after disappointing results from Alphabet and Tesla. Alphabet shares dropped 7 per cent after the company raised its full-year capital expenditure guidance to more than $200 billion.
Elon Musk’s Tesla fell nearly 15 per cent after reporting profit that missed expectations and warning that operating expenses would increase.
The market reaction comes ahead of a key week of earnings from major global technology companies.
According to reports, investors are expected to scrutinise spending plans from Meta Platforms and Amazon, “which could shape the direction of technology shares in the coming weeks”.
Alphabet, Microsoft, Amazon and Meta are likely to spend about $724 billion on capital expenditure this year and nearly $950 billion in 2027, according to reports.
