Big tech stocks lose billions as AI spending fears hit valuations

Feb 16 (Reuters) - The ‌world's most ​valuable ​technology stocks have suffered sharp declines in market value this year after years of ‌outsized gains, as investors question whether heavy spending ⁠on AI will generate sufficient returns to justify the ‌lofty valuations.

Microsoft shares have fallen ‌about 17% year-to-date on concerns over risks to its AI business and growing competition from Google's ​latest Gemini model and Anthropic's Claude Cowork AI agent, wiping roughly $613 billion off its market ⁠value to about $2.98 trillion as of Friday.

Amazon has shed around 13.85% so ​far this year, erasing about $343 billion in market value and leaving the company valued ​at roughly $2.13 trillion.

Earlier this month, ‌Amazon said it expects capital spending to jump more than 50% this year.

Nvidia, ⁠Apple and Alphabet have also seen their market values decline by $89.67 billion, $256.44 billion and $87.96 billion, respectively, since the ⁠start of 2026, to $4.44 trillion, $3.76 trillion and $3.7 trillion.

The pullback signals a ​broader shift in market psychology, with investors moving from rewarding long-term AI ambitions to demanding near-term earnings visibility after ‌years of speculative enthusiasm.

By contrast, TSMC, Samsung Electronics and Walmart have added $293.89 billion, $272.88 ‌billion and $179.17 billion in market value, respectively, over the ⁠same period, lifting their ‌valuations to $1.58 trillion, $817 ​billion and $1.07 trillion.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Sumana ‌Nandy)

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