{"id":129062,"title":"AI meltdown wipes out $1 trillion from US tech heavyweights","publisher":"Share Talk","author":"sharetalk","published":"2025-11-08T09:32:14+00:00","modified":"2025-11-08T09:49:16+00:00","canonical_url":"https://www.share-talk.com/ai-meltdown-wipes-out-1-trillion-from-us-tech-heavyweights/","markdown_url":"https://www.share-talk.com/ai-meltdown-wipes-out-1-trillion-from-us-tech-heavyweights.md","json_url":"https://www.share-talk.com/ai-meltdown-wipes-out-1-trillion-from-us-tech-heavyweights.json","category":"Blogs","categories":["Blogs","e-commerce","Fintech","Technology","Technology, Media & Telecoms"],"tags":["AI Strategies","algorithmic","Algorithmic Trading","Alphabet","Amazon Meta","Apple","ARTIFICIAL INTELLIGENCE","currencies","economic indicators","Forex market","Google","Magnificent Seven","market data","Microsoft","news sentiment","price movements","Tesla"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/04/AI-Chip.webp?fit=1200%2C800&quality=80&ssl=1","format":"news","language":"en-GB","content":"Almost **$1 trillion** has been erased from the value of **Wall Street’s largest technology companies** this week, as investors grow increasingly wary of **soaring valuations linked to artificial intelligence**.\n\nThe so-called **Magnificent Seven** — **Nvidia, Tesla, Alphabet, Amazon, Meta, Microsoft** and **Apple** — have borne the brunt of the sell-off, which traders say reflects mounting scepticism over whether **AI investment enthusiasm** is justified by underlying profits.\n\n**Nvidia**, which last month became the world’s first **$5 trillion company**, fell a further **2.3%** in early New York trading and has shed **nearly $500 billion** in market value this week alone.\n\nCollectively, losses across the Magnificent Seven have reached **$953.7 billion (£724.5 billion)**. The **Nasdaq Composite**, the world’s leading tech index, is heading for its **worst week since Donald Trump’s April tariff onslaught**, down **3.9%** so far.\n\nThe sell-off comes as traders question whether **AI firms’ ambitious spending plans** can be supported by revenue growth. **OpenAI’s $1.4 trillion, eight-year investment blueprint**, underpinned by a **$100 billion partnership with Nvidia**, has underscored concerns about **the scale of capital being deployed** relative to earnings.\n\n**Sam Stovall**, chief investment strategist at **CFRA Research**, said:\n\n> “There is a continuation of concern about a possible pullback — it’s traditional early-November weakness triggered by elevated valuations and a lack of fresh catalysts to support the market.”"}