The $1.3 trillion "AI disappointment": Microsoft Corporation (MSFT.US) and Amazon.com, Inc. (AMZN.US) lead the decline, investors are no longer buying into the vision.

This year, the market value of the world's highest-valued technology stocks has experienced a significant decline, as investors doubt whether the massive investments in the field of artificial intelligence can bring sufficient returns to support their overvalued positions. Since January 2026, the total market value of Apple Inc. (AAPL.US), Alphabet (GOOGL.US), NVIDIA Corporation (NVDA.US), Amazon.com, Inc. (AMZN.US), and Microsoft Corporation (MSFT.US) has decreased by over $1.3 trillion. Which technology stocks have been impacted the most? This reversal indicates a broader change in investor sentiment, as they are now more focused on short-term financial transparency rather than long-term artificial intelligence goals. This selloff has caused Microsoft Corporation's market value to plummet by approximately $613 billion, with its valuation standing at around $2.98 trillion as of last Friday. Amazon.com, Inc. has fallen by approximately 13.85% year-to-date, with a market value decrease of around $343 billion. The company is currently valued at around $2.13 trillion. NVIDIA Corporation has seen a market value decrease of $89.67 billion since early 2026, with its current market value at $4.44 trillion. Apple Inc. has seen a market value decline of $256.44 billion, falling to $3.76 trillion. Alphabet's market value has decreased by $87.96 billion, with its current valuation at $3.7 trillion. Why are investors selling off large tech stocks? This reversal reflects a more widespread change in investor sentiment, as they now seek immediate financial visibility rather than long-term artificial intelligence goals. This marks a significant shift compared to the speculative frenzy that has been driving tech stock values to new highs in recent years. The core concern is whether the massive capital expenditures on artificial intelligence infrastructure can generate sufficient returns to support the current stock prices. How is Amazon.com, Inc. addressing expenditures? Amazon.com, Inc. announced earlier this month that it expects its capital investments to increase by over 50% this year. This news has heightened investors' concerns about rising costs in this area. Amazon.com, Inc.'s spending plans reflect intense competition in the artificial intelligence development field, but investors are worried about when these expenditures will start to yield returns. How is competition affecting Microsoft Corporation? Microsoft Corporation is facing fierce competition from Alphabet Inc. Class C's newly launched Gemini model and Anthropic's Claude Cowork AI agent. These competitive pressures are threatening Microsoft Corporation's artificial intelligence division, which has been a significant growth engine and valuation support. Investors are concerned that increasing competition may squeeze profits and hinder the widespread adoption of Microsoft Corporation's artificial intelligence solutions. Amid the downturn in tech stocks, which companies are rising? Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) has seen an increase in market value of $293.89 billion during the same period, with a current valuation of approximately $1.58 trillion. Samsung Electronics market value has increased by $272.88 billion, reaching $817 billion. Walmart Inc. (WMT.US) has seen an increase of $179.17 billion in market value, reaching $1.07 trillion. These gains contrast sharply with the losses of large tech stocks, indicating that investors are shifting towards different industries and regions.