Big tech stocks lose billions as AI spending fears hit valuations

The world’s most ⁠valuable ⁠technology stocks have ⁠suffered sharp declines in market value this ​year after years of outsized gains, as investors question ‌whether heavy spending on AI ‌will generate sufficient returns to justify the ⁠lofty ⁠valuations.

Microsoft shares have fallen about 17% year-to-date on concerns ​over risks to its AI business and growing competition from Google’s latest Gemini model and Anthropic’s Claude Cowork ​AI agent, wiping roughly $613 billion off its market value ⁠to about $2.98 ⁠trillion as of ⁠Friday.

Amazon ​has shed around 13.85% so far this year, erasing about $343 ​billion in market ⁠value and leaving the company valued at roughly $2.13 trillion.

Earlier this month, Amazon said it expects capital spending to jump more than 50% this year.

Nvidia, ⁠Apple and Alphabet have also seen their market values decline ⁠by $89.67 billion, $256.44 billion and $87.96 billion, respectively, since the start of 2026, to $4.44 trillion, $3.76 trillion and $3.7 trillion.

The pullback signals a broader shift in market psychology, with investors moving from rewarding long-term AI ambitions to demanding near-term earnings visibility after years of speculative enthusiasm.

By contrast, TSMC, Samsung Electronics and ⁠Walmart have added $293.89 billion, $272.88 billion and $179.17 billion in market value, respectively, over the same period, lifting their valuations to $1.58 trillion, $817 billion and $1.07 trillion.

Several companies have downsized or ⁠postponed ⁠their U.S. initial public ⁠offerings in 2026, as market volatility, valuation scrutiny and weak ​peer performance weighed on the new listings pipeline.

Goldman Sachs analysts said earlier this ‌month that they expect the ‌number of IPOs to double to 120 this year, but warned that ⁠a selloff ⁠in software stocks has underscored valuation risks.

In recent weeks, companies ​including Wall Street broker Clear Street, Brazilian fintech Agibank and Blackstone-backed Liftoff Mobile have trimmed deal sizes or pushed back their planned listings, as they wait for volatility ​to subside amid heightened investor scrutiny of aggressive pricing and lofty valuations.

Here ⁠is an ⁠overview of some of ⁠the ​issuers who downsized or postponed their offerings in 2026:

Wall Street broker Clear ​Street on Thursday postponed ⁠its U.S. IPO, citing “market conditions,” marking the second delayed listing this month amid another bout of market volatility.

The move came just hours after the New York-based company slashed the fundraising target of its U.S. IPO by a whopping ⁠65%.

Clear Street intends to reconsider the listing at a later time.

Brazilian fintech ⁠Agibank raised $240 million in its downsized U.S. IPO after sharply reducing both the proposed deal size and the price range.

The Sao Paulo-based company sold 20 million shares at $12 apiece. It had earlier offered roughly 43.6 million shares between $15 and $18 apiece.

The stock, which debuted on Wednesday, has plunged nearly 15% from the offer price as of Thursday’s close.

Blackstone-backed mobile app marketing provider Liftoff Mobile last week decided to ⁠postpone its planned New York listing against the backdrop of a steep selloff in software stocks.

The company cited “current market conditions” for the postponement and said it plans to revisit the listing at a later ​time.