Shares of the largest U.S. technology firms moved lower on Monday as investor anxiety about hefty AI-related capital expenditures intensified and SpaceX extended a post-IPO pullback.
SpaceX slid more than 10% following last week’s rapid post-IPO advance. The Elon Musk-led company also announced it was launching a notes offering on Monday. The stock’s third consecutive decline helped set the tone for a downdraft across many high-profile names.
Alphabet fell 6%, on track for its largest one-day decline since May 2025 and positioned to wipe out in excess of $256 billion in market capitalization. The company’s Google DeepMind lab saw another headline exit as senior research scientist and Nobel laureate John Jumper left to join AI startup Anthropic.
Amazon.com shares lost 4.8%, and Meta Platforms and Microsoft each eased by around 3%. The three stocks combined were set to surrender more than $248 billion in market value.
Investors have grown cautious as hyperscale cloud providers pour substantial sums into expanding AI infrastructure, with returns from AI products not yet demonstrating they justify the scale of the spending. Aptus Capital Advisors’ David Wagner summed up the market mood: "This is more of a broader sector pullback on ongoing anxiety over tech companies’ massive capital spend on the AI infrastructure."
Not all areas of the market participated in the decline. Most chip-related equities climbed, led by memory chipmaker Micron Technology, which advanced 5.8% to reach record highs. Micron also announced a strategic agreement with Anthropic to help scale next-generation AI infrastructure. Fellow data storage companies SanDisk and Western Digital ranked among the better performers on the S&P 500 this year, emerging as beneficiaries of investor expectations for robust AI-driven demand.
The immediate market action highlighted a growing bifurcation between companies incurring heavy capital expenses to build AI capacity and suppliers expected to receive much of that spending.
- Megacap cloud and ad-platform names saw steep market-cap reductions amid investor concerns about AI-related spending.
- Memory and data storage firms outperformed, reflecting expectations they will capture demand from AI infrastructure build-outs.
- Notable personnel moves at AI labs and new strategic partnerships added to market sensitivity.