New Delhi–A four-session selloff in U.S. technology stocks has erased about $1.2 trillion in market value as investors grow increasingly concerned about rising artificial intelligence spending and the returns generated by those investments.
The Nasdaq 100 extended its decline, with Tesla among the biggest losers. The electric vehicle maker’s shares fell more than 16% over four trading sessions.
Sandisk, T-Mobile, Meta Platforms, Alphabet and Amazon declined between 7% and 10% over the same period, according to reports.
The selloff was driven by concerns about higher AI-related spending, weaker-than-expected earnings and increased capital expenditure plans at some of the world’s largest technology companies.
Nvidia shares fell 5% Monday, reducing the chipmaker’s market capitalization to $4.77 trillion. The decline allowed Apple to reclaim its position as the world’s most valuable publicly traded company for the first time since April 2025.
Selling intensified after disappointing earnings reports from Alphabet and Tesla.
Alphabet shares dropped 7% after the company raised its full-year capital expenditure forecast to more than $200 billion.
Tesla fell nearly 15% after reporting profit below market expectations and warning that operating expenses would rise.
The decline comes ahead of earnings reports from several major global technology companies. Investors are expected to closely examine spending plans from Meta Platforms and Amazon, which could influence the direction of technology stocks in the coming weeks.
Alphabet, Microsoft, Amazon and Meta are expected to spend about $724 billion on capital expenditures this year and nearly $950 billion in 2027, according to reports. (Source: IANS)
