Mag 7 faces brutal reality check as $200B AI bill drops bombshell

That's due to the fact that investors interest that the radical is spending billions connected information labs that whitethorn instrumentality years to go profitable.

And there's nary motion the contagion is easing.

Among the 7 Magnificent Seven stocks, 5 are showing losses of 10% oregon much from their caller 52-week highs:

• Amazon.com, down 13.9% connected the Feb. 5 adjacent from Nov. 3, 2025's peak.

• Facebook genitor Meta Platforms, down 15.8% since peaking connected Aug. 15, 2025.

• Microsoft, down 29.1% from July 31, 2025 peak.

• Nvidia, down 19% from its Oct. 29, 2025 top.

• Tesla, down 20.4% the Dec. 22, 2025 peak.

Apple, a subordinate of the Dow Jones 30, and Google-parent Alphabet are besides down, but not arsenic overmuch arsenic the others: 4.4% for Apple and 5.1% for Alphabet from highs reached connected Dec. 3, 2025, and Feb. 3, 2026, respectively.

But Amazon shares fell 9.6% after reporting net and estimated it volition walk $200 billion connected artificial quality investments this twelvemonth alone.

The stocks that emerged successful 2025 arsenic near-Mag 7 stocks were also, well, creamed:

• Broadcom, down 23.65% from Sept. 10, 2025.

• Palantir, down 36.6% from Nov. 3, 2025.

• Oracle, down 60.5% from Sept. 10, 2025.

The losses for galore stocks present travel aft large gains successful 2025. And the marketplace arsenic a full is feeling the stress.

• The Standard & Poor's 500 Index is present disconnected 1.53% successful February and down 0.7% truthful acold successful 2026.

• The Nasdaq Composite Index, down 3% for the year, has seen a 3.7% descent truthful acold successful February and is looking astatine a 3% nonaccomplishment this year.

• The Dow Jones Industrial Average, contempt a Feb. 5 nonaccomplishment of astir 593 points, is up 1.76% this twelvemonth and adjacent up 0.8% truthful acold for the month.

The S&P 500 is down 2.9% from its 52-week precocious past fall. The Nasdaq-100 Index is down 6.2%, but the caller selling is proving stubborn.

For large tech companies, the hostility is increasing betwixt companies and investors arsenic they effort to equilibrium the concern levels needed to present connected artificial concern goals and shareholders' involvement successful gains.

Big tech, which saw shares leap past year, are giving a batch back. Oracle was up 107.5% successful 2025 and is down 30% this year. Nvidia, up 40% successful 2025, is down 7.8% successful 2026.

"People are decidedly going much defensive," said Brian Frank, president and portfolio manager astatine Frank Funds, told Bloomberg. "It’s much of similar a sprout archetypal and inquire questions aboriginal benignant environment."