The equity value of the largest technology companies fell sharply in early 2026 as investors doubted whether huge AI investments would pay off. The market shifted from rewarding long-term projections to demanding clear, near-term profitability. Microsoft’s stock dropped about 17% this year. Threats to its AI plans and pressure from Google and Anthropic erased an estimated $613 billion from its market value.
Artificial-Intelligence Spending Sprees Raise Investor Doubts
Amazon’s stock also dropped nearly 14% this year, costing the company around $343 billion in market value. Earlier this month, Amazon said it will likely increase capital expenditure by over 50%, underscoring the high cost of the AI race. NVIDIA, Apple, and Alphabet have also lost hundreds of billions of dollars since the start of the year. Investors now demand clear proof of value from AI investments. They no longer believe heavy AI spending can ensure credible returns. Manufacturers’ performance diverges significantly from that of large technology firms, reflecting broader differences in market evaluation criteria and investment risk tolerance.
Market winners tell a different story
Not all large firms suffered. Taiwan Semiconductor Manufacturing, Samsung Electronics, and Walmart gained significant market value in 2026. This shift highlights changing investor attitudes. Companies with strong demand, cash flow, and clear financial results are rewarded. In contrast, AI start-ups with heavy spending and unclear near-term returns face more scrutiny.