Investor sentiment around ai is beginning to shift, as rising costs and uncertain returns challenge the optimism that once powered technology stocks. After several years of strong gains driven by AI expectations, major global companies are now facing market corrections as investors demand clearer profitability.
Several leading US technology firms have lost hundreds of billions of dollars in market value since the start of 2026. Increased spending on AI infrastructure, along with intensifying competition from new products, has raised concerns about near-term earnings.
Shares of Microsoft have declined about 17% year-to-date, erasing nearly $613 billion in value and bringing its market capitalisation to around $2.98 trillion as of Friday. Investors remain cautious about risks to its AI business amid competition from rival AI models and agents.
Amazon has also faced pressure, with its stock down about 13.85% this year. The fall has wiped out roughly $343 billion, leaving the company valued at nearly $2.13 trillion. Earlier this month, the company said capital spending could rise by more than 50% in 2026, raising questions about how quickly AI investments will generate returns.
Other major players have also seen declines. Nvidia has lost about $89.67 billion in value, now standing at $4.44 trillion. Apple has shed around $256.44 billion, bringing its valuation to about $3.76 trillion, while Alphabet has dropped roughly $87.96 billion to about $3.7 trillion.
The pullback signals a change in market mood. Investors who previously backed long-term AI growth are now focusing more on immediate earnings and measurable returns as spending on data centres and AI systems rises.
Not all companies have seen losses. Taiwan Semiconductor Manufacturing Co added about $293.89 billion to reach $1.58 trillion in value. Samsung Electronics gained $272.88 billion, taking its valuation to $817 billion, while Walmart rose by $179.17 billion to $1.07 trillion.
In the broader market, the S&P 500 closed slightly higher on Friday due to cooling inflation data, but the Nasdaq ended lower as technology stocks declined. The Dow also fell during the week. US markets remained closed on February 16, 2026.
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