Magnificent Seven drop 10% on AI worries, lose almost $2.3T
The big tech "Magnificent Seven" (NVIDIA, Meta, Apple, Microsoft, Alphabet, Amazon, and Tesla) just had a rough June, dropping 10% in value and losing almost $2.3 trillion combined.
Investors are worried about how much these companies are spending on AI projects and whether those bets will actually pay off.
Microsoft down 20%, NVIDIA about 13%
Microsoft took the hardest hit with a 20% fall, followed by NVIDIA at around 13%, while Apple and Amazon each slipped around 8%.
Rising costs for AI infrastructure and chip shortages have made investors nervous about profits.
Even some companies using AI, like Uber and Walmart, have started pulling back because it's getting pricey.
With earnings season around the corner, everyone's watching to see if all this spending will really boost Big Tech's bottom line.