Finance
Big tech stocks lose billions as AI spending fears hit valuations
Published by Global Banking & Finance Review®
Posted on February 16, 2026
2 min readLast updated: February 16, 2026
Quick Summary
Tech giants like Microsoft and Amazon face valuation drops due to AI spending concerns, while TSMC and Samsung gain market value.
Tech Giants Face Billions in Losses Amid AI Spending Concerns
Impact of AI Spending on Tech Stocks
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.
Market Value Declines of Major Companies
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.
Investor Sentiment Shift
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.
Contrasting Performance of Other Firms
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)
Key Takeaways
- •Tech stocks see significant market value declines in 2023.
- •AI spending raises concerns about long-term returns.
- •Microsoft and Amazon face major valuation drops.
- •Investors shift focus from long-term to near-term earnings.
- •TSMC and Samsung see market value increases.
Frequently Asked Questions about Big tech stocks lose billions as AI spending fears hit valuations
1What is AI spending?
AI spending refers to the financial investment made by companies in artificial intelligence technologies and initiatives, aimed at enhancing their operations and competitiveness.
2What are tech stocks?
Tech stocks are shares of companies in the technology sector, which includes businesses that develop or sell technology products and services.
3What is market value?
Market value is the total worth of a company as determined by the stock market, calculated by multiplying the current share price by the total number of outstanding shares.
4What is investor sentiment?
Investor sentiment is the overall attitude of investors toward a particular security or financial market, influenced by market trends, news, and economic indicators.
5What are valuations in finance?
Valuations in finance refer to the process of determining the current worth of an asset or a company, often used for investment analysis and decision-making.
