Key facts
- US technology megacap stocks declined significantly on Monday.
- SpaceX shares fell over 10%, marking its third consecutive session of losses.
- Alphabet was on pace to lose over $256 billion in market capitalization.
- Amazon.com, Meta Platforms, and Microsoft collectively were set to lose more than $248 billion.
- Concerns over the high capital spending on AI infrastructure are driving investor anxiety.
- Micron Technology shares rose 5.8% to a record high, with a new agreement with Anthropic.
Shares of major U.S. technology companies experienced a significant downturn on Monday, with Alphabet and Amazon particularly affected. The slump was attributed to growing concerns over the substantial capital expenditures required for artificial intelligence infrastructure, with investors awaiting clearer evidence of returns.
SpaceX, an Elon Musk-led firm, saw its shares slide over 10%, contributing to the broader market weakness. Alphabet was on track for its largest one-day percentage drop since May 2025, potentially losing over $256 billion in market capitalization. This decline coincided with the announcement that John Jumper, a senior research scientist at Google DeepMind and Nobel laureate, is leaving for AI startup Anthropic, marking another high-profile exit from the lab.
Amazon.com lost 4.8%, while Meta Platforms and Microsoft eased around 3% each. Combined, these three companies were set to shed more than $248 billion in market value. Analysts noted that hyperscalers have committed billions to AI infrastructure, but the justification for these massive spends through AI product returns remains uncertain.
In contrast, chip-related stocks showed strength, with memory chipmaker Micron Technology leading the gains, rising 5.8% to a record high. Micron also announced a strategic agreement with Anthropic to scale next-generation AI infrastructure. This performance highlights a market divergence, with companies like Micron benefiting from AI demand while others face increased spending pressures.