The Magnificent Seven stocks—comprised of Microsoft, Amazon, Apple, Alphabet, NVIDIA, Tesla, and Meta—experienced their sharpest one-day decline since April 2025, erasing nearly $797 billion in market value. This decline took place following quarterly earnings reports that heightened investor concerns over rising AI infrastructure spending.
On the day of the sell-off, Alphabet and Tesla led the decline, with shares falling 7% and 14.5%, respectively, resulting in a loss of around $200 billion in Tesla’s market value alone. Alphabet attributed its increased spending on AI infrastructure to capture growth opportunities, projecting a capital expenditure of $195 billion-$205 billion by 2026.
In contrast, companies related to AI technology, such as memory-chip makers Micron Technology and SK Hynix, saw stock increases despite the broader downturn, highlighting a market shift where investment returns favor those benefiting from AI rather than those investing heavily in it.
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