Wall Street just delivered its harshest judgment yet on Big Tech's AI spending spree. Over $1.35 trillion vanished from the combined market caps of Microsoft, Nvidia, Oracle, Meta, Amazon and Google in a single week, as investors questioned whether the industry's unprecedented $660 billion AI buildout will ever pay off. The rout intensified Friday morning with Amazon down 8% in premarket trading after revealing a staggering $200 billion capex plan—up 56% year-over-year and the highest among hyperscalers.
The AI investment frenzy that powered Big Tech's meteoric rise is now triggering the sector's most dramatic correction in recent memory. Amazon, Microsoft, Nvidia, Meta, Google and Oracle collectively shed $1.35 trillion in market capitalization over the past week, according to FactSet data, as quarterly earnings reports revealed eye-watering capital expenditure commitments that left investors questioning the path to profitability.
The selloff accelerated Friday morning with Amazon plunging 8% in premarket trading after the company disclosed plans to spend $200 billion on infrastructure this year—primarily for its AWS cloud division. That's a 56% jump from 2025 and the highest capex commitment among the so-called hyperscalers. "The key focus of Amazon's results was the capex guide of $200bn, up 56% on the year, ahead of market expectations and the highest amongst the hyperscalers," Mamta Valechha, consumer discretionary analyst at Quilter Cheviot, told CNBC Friday morning.
Google shares dropped 1% in premarket trading, while held largely flat. , and managed modest single-digit gains, but the broader picture remains grim. Through Thursday's close, the entire cohort had watched more than a trillion dollars in shareholder value evaporate as Wall Street reassessed the AI buildout narrative that's dominated tech investing for the past two years.
