Major technology stocks have given up substantial market value so far this year as investor sentiment shifts away from long-range AI optimism toward a demand for nearer-term earnings clarity. Concerns that the scale of AI spending may not translate into timely returns have driven notable declines in the market caps of some of the industry’s most valuable firms.
Firm-level moves
Microsoft shares are down roughly 17% year-to-date amid investor worries over risks to its AI business and intensifying competition from Google’s latest Gemini model and Anthropic’s Claude Cowork AI agent. That decline has removed about $613 billion from Microsoft’s market value, reducing it to approximately $2.98 trillion as of Friday.
Amazon has fallen around 13.85% so far this year, which equates to an erasure of roughly $343 billion in market value and places the company at an estimated $2.13 trillion. The company also announced expectations that capital spending will increase by more than 50% this year, a factor that investors are weighing against the need for clearer near-term earnings visibility.
Other large technology names have also seen contractions in value since the start of 2026. Nvidia has lost about $89.67 billion, Apple has declined by roughly $256.44 billion, and Alphabet has given up about $87.96 billion. Their respective market values now stand at approximately $4.44 trillion for Nvidia, $3.76 trillion for Apple, and $3.7 trillion for Alphabet.
Winners over the same period
Not all market capitalizations moved lower. Taiwan Semiconductor Manufacturing Co. added about $293.89 billion, lifting its valuation to around $1.58 trillion. Samsung Electronics increased by roughly $272.88 billion to reach an estimated $817 billion, while Walmart gained about $179.17 billion, bringing its market value to near $1.07 trillion.
Market psychology and focus
The recent pullback reflects a broader reorientation among investors. After years of rewarding companies for long-term AI ambitions, some market participants are now placing greater emphasis on firms' near-term earnings visibility and how capital deployment for AI will affect returns in nearer windows of time. This shift has contributed to pronounced valuation changes across technology and adjacent sectors.
Implications
The movements highlight the tension between sustained heavy investment in transformative technology and the immediate demand for clearer profitability metrics. Companies increasing capital expenditure for AI are being examined for how that spending will translate into measurable earnings in the nearer term.
This report presents observed market valuation changes and investor sentiment dynamics based on reported data for the period described.