Big Tech stocks slide as SpaceX extends slump, AI concerns grow

Source Domain: www.cp24.com

Certainly! Here is a summary of the article using an unordered list with key points:

Technology Megacaps’ Decline:
- Shares of U.S. technology megacaps, including SpaceX, Alphabet, and Amazon, experienced significant drops in stock value on Monday.
- Specifically, SpaceX fell for the third consecutive session, posting over 10 percent decline.
- Alphabet’s stock plummeted by six percent, marking its biggest single-day fall since May 2025.
- Amazon’s stock dropped by 4.8 percent, while Meta Platforms and Microsoft saw declines of around three percent each.
AI Spending Concerns:
- The declines are driven by investor concerns over the significant capital expenditure tech companies are making to scale up their artificial intelligence infrastructure.
- Despite huge investments in AI, conclusive evidence of returns that justify these expenditures is still lacking.
Notable Exits:
- Google DeepMind’s senior research scientist and Nobel laureate John Jumper announced his departure to join AI startup Anthropic, highlighting a trend of high-profile exits from major tech firms.
Market Reaction:
- Combined losses from Amazon, Alphabet, and Meta were set to erase more than $248 billion in market value.
- The situation underscores broader market anxiety surrounding tech companies’ substantial investments in AI infrastructure.
Performance of Chip Stocks:
- In contrast, most chip-related stocks performed well.
- Memory chipmaker Micron Technology saw a 5.8 percent gain, hitting record highs.
- Micron also secured a strategic agreement with Anthropic to scale next-generation AI infrastructure.
AI Demand Optimism:
- Data storage companies like Micron, SanDisk, and Western Digital are the best-performing stocks on the S&P 500 this year, benefiting from hopeful robust AI-related demand.