After years of powerful gains driven by artificial intelligence optimism, global technology giants are now facing sharp market corrections in 2026. Investors who once rewarded ambitious AI expansion strategies are beginning to question whether massive spending on infrastructure, data centers, and AI tools will translate into near-term profits.
Microsoft has seen its shares fall approximately 17% year-to-date, wiping out around $613 billion in market value and bringing its valuation to about $2.98 trillion. Concerns are mounting over competitive pressure from Google’s Gemini AI model and Anthropic’s Claude AI agent, raising questions about Microsoft’s AI dominance and future margins.
Amazon has also experienced significant losses, with shares down nearly 13.85% this year. The company has lost approximately $343 billion in market value, as investors react to plans for a more than 50% increase in capital expenditures focused heavily on AI expansion.
Other major players are not immune. Nvidia has seen its market value decline by nearly $90 billion despite remaining one of the biggest beneficiaries of the AI boom. Apple and Alphabet Inc. have also recorded significant valuation drops, reflecting broader market caution around tech earnings and AI-related disruption risks.
However, not all global giants are facing losses. Taiwan Semiconductor Manufacturing Company (TSMC) has gained nearly $294 billion in value, benefiting from strong semiconductor demand. Samsung Electronics has added roughly $273 billion, while Walmart has risen by around $179 billion, showing resilience outside the high-growth AI software segment.
In the broader market, the S&P 500 ended slightly higher on cooling inflation data, while the Nasdaq Composite declined as technology stocks struggled. The shift signals a clear change in investor sentiment—from long-term AI enthusiasm to a sharper focus on profitability, spending discipline, and competitive positioning.
With US markets closed on February 16, 2026, volatility remains elevated as investors continue to assess how artificial intelligence will reshape profits, competition, and valuations across the technology sector.
