AI spending rout wipes $2.3T from Big Tech

• The “Magnificent Seven” lost about $2.3 trillion in market value in June amid concerns over AI infrastructure spending.
• Microsoft fell 20%, Nvidia dropped about 13%, while Apple and Amazon each declined roughly 8%.
• Investors are rotating out of mega-cap tech into semiconductor and memory stocks tied more directly to AI demand.

The combined market value of the Magnificent Seven — Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), and Amazon.com (NASDAQ:AMZN) — fell about $2.3 trillion in June, according to CNBC.

The CNBC Magnificent 7 Index declined 10% over the month, with losses deepening after concerns grew around the scale of artificial intelligence infrastructure spending.

Microsoft fell 20% in June, Nvidia dropped roughly 13%, and Apple and Amazon each declined about 8%, according to CNBC and Yahoo Finance data.

The companies have collectively committed hundreds of billions of dollars toward AI chips, data centers, and related infrastructure, with portions financed through borrowing, according to the report.

Analysts said AI-related capital expenditures across major tech firms are projected to exceed $700 billion in 2026, a rise of about 70% year over year.

Market strategists said investors are reassessing valuation models as free cash flow expectations weaken and capital intensity increases across the sector.