Big tech stocks have lost $1.3 trillion on Monday’s trading session as Amazon, Nvidia, Meta, and Alphabet slump in value. The AI spending fears are wreaking havoc in the markets as tech titans are pouring billions into it. All of this comes at a time when speculations are rife about whether AI could be a bubble that’s about to pop.
Here’s how tech stocks closed on Monday’s trading session, with Amazon, Nvidia, Meta, and Alphabet in the red.
- Apple -2.30%
- Nvidia -2.25%
- Meta -1.60%
- Alphabet -1.25%
- Amazon dipped -0.50%
- Microsoft -0.15%
The tech sector is the least-performing sector in 2026, while the energy industry is experiencing a boom. Big tech stocks like Amazon, NVDA, and Meta are the hardest hit because investors are seeking short-term financial transparency over long-term AI objectives. This is a change in investors’ sentiment as the prospects of AI are now speculative.
There are doubts about whether the massive AI spending can generate sufficient returns to justify current stock prices. The software titans have already invested nearly $700 billion to build the infrastructure. Tech stocks like Amazon, Nvidia, and Meta, among others, are leading the race in massive spending.
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Should You Buy the Dip, and Is This the Best Opportunity?
The wounds of the tech stocks Amazon, Nvidia, Meta, and Alphabet are raw currently. The cuts look deep, but a recovery from here is possible, as earnings have beaten expectations. As Warren Buffett’s saying goes, “Be fearful when others are greedy, and greedy when others are fearful.”
Tech stocks like AMZN, NVDA, and Meta are known to bounce back stronger when the market recovers. The downturn is mostly not due to revenue losses, but investors’ skepticism about AI spending. Once the sector goes mainstream, revenues would pour in, leading to a quick recovery.
