Magnificent 7 stocks shed hundreds of billions amid AI spending fears - Fox Business

What the report says

Fox Business reported that the group of large technology companies known as the “Magnificent Seven” suffered a sharp market selloff as investors weighed the cost of artificial intelligence buildouts. Citing Bloomberg, the report said an index tracking the group fell 4.8% on Thursday, erasing about $787 billion in market value in its largest one-day decline in more than a year. By Thursday’s close, the index was about 11% below its late-May record, with roughly $2 trillion in market capitalization lost from that peak.

The pressure intensified after Alphabet and Tesla released earnings updates that highlighted heavy capital spending plans. Fox Business said Alphabet raised its expected 2025 capital expenditures to about $200 billion from $190 billion, with AI data centers and related infrastructure driving the increase. Tesla also pointed to major spending ahead, with CEO Elon Musk saying 2026 would be a “massive capex year” as the company invests in AI, autonomous vehicles, robotaxis and Optimus humanoid robots.

According to the report, six of the seven stocks were lower over the prior five trading days as of Friday morning, led by Tesla with a decline of more than 19%. Alphabet, Amazon, Meta, Microsoft and Apple were also down, while Nvidia was the exception with a gain of about 1.9% over that period.

The selloff matters because AI investment has been a key driver of megacap technology valuations. Analysts cited by Fox Business said the market reaction suggests investors are increasingly focused on when large AI-related spending will translate into returns, even as some remain positive on the longer-term infrastructure theme.