Major U.S. technology companies have lost more than $1 trillion in market value over the past week as investors grew uneasy about soaring artificial intelligence spending.
Shares of Microsoft, Nvidia, Amazon, Alphabet, Meta, and Oracle all declined after earnings reports highlighted aggressive capital spending plans.
According to FactSet, roughly $1.35 trillion has been erased from valuations. Big Tech firms plan to spend about $660 billion on AI infrastructure this year, raising concerns about returns and overcapacity.
Hundreds of billions of dollars were wiped off the value of stocks, bonds and loans of companies big and small across Silicon Valley, with software stocks at the epicenter.
— Bloomberg (@business) February 5, 2026
The spark for the selloff was AI startup Anthropic. @BrodyFord_ explains why https://t.co/yAehFDEfAd pic.twitter.com/27Jv59AAR0
Analysts warned that uncertainty around long-term profitability is weighing on sentiment.
Amazon disclosed a $200 billion capital spending plan, largely for its cloud business, unsettling investors despite management’s optimism.
By contrast, Apple, which has taken a more cautious AI approach, saw its stock rise on strong iPhone demand.
Market strategists say the AI trade has become a high-risk bet with limited margin for error.
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TIPP Staff
