'Magnificent Seven' stocks tumble as AI spending fears mount

Industry Impact 4
โดย Yahoo Finance·Read original
Summary · why it matters

The Magnificent Seven stocks have fallen more than 13% since mid-May, while the Invesco QQQ Trust and the S&P 500 are down only about 2% over the same period. Amazon is 11% below its 52-week high, Apple 11.7%, Alphabet 12.3%, Meta 14.4%, Nvidia 18.5%, Tesla 32.6%, and Microsoft 32.9%. Wall Street is growing impatient with Big Tech's massive capital expenditures on artificial intelligence, which are projected to surge 70% to exceed $700 billion this year, cannibalizing free cash flow. Concerns about a potential Federal Reserve rate hike later this year are adding to the pressure by raising financing costs for AI projects. Wedbush analyst Dan Ives described the period as a gut check ahead of a crucial second-quarter earnings season in July, noting that jitters will continue as worries about the costs of the AI buildout intensify.

Impact on stocks 7

Artificial Intelligence▼ · 7 stocks
Apple Inc.
AAPL
▼ NegativeCapitalrelevance

Massive AI capex spending is cannibalizing free cash flow, raising investor impatience.

Amazon.com Inc
AMZN
▼ NegativeCapitalrelevance

AI capex surge and potential rate hike pressure financing costs, hurting free cash flow.

Alphabet Inc Class C
GOOG
▼ NegativeCapitalrelevance

Wall Street impatient with Big Tech's AI capex spending, which is projected to surge 70%.

Meta Platforms Inc.
META
▼ NegativeCapitalrelevance

AI capex spending fears and potential rate hike raise financing costs, pressuring stocks.

Microsoft Corporation
MSFT
▼ NegativeCapitalrelevance

Massive AI capex spending cannibalizing free cash flow, with potential rate hike adding pressure.

NVIDIA Corporation
NVDA
▼ NegativeCapitalrelevance

Massive AI capex spending is cannibalizing free cash flow, raising investor impatience.

Tesla Inc
TSLA
▼ NegativeCapitalrelevance

Massive AI capex spending is cannibalizing free cash flow, raising investor impatience.

Theme Impact 7

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