US Stock Market Tech Giants' Stocks Drop Significantly, AI Investment in Question

TapTechNews August 6th news, the US stock market suffered a heavy setback on Monday. The stock prices of tech giants Apple, Tesla, Alphabet, Amazon, NVIDIA, Microsoft, and Meta Platforms all dropped significantly, and the combined market value evaporated nearly 800 billion US dollars (TapTechNews note: currently about 5.74 trillion yuan). This wave of selling was mainly affected by factors such as concerns about the US economic recession, Berkshire Hathaway's reduction of Apple's shares, and doubts about the return on AI investment.

Among the tech giants known as the Seven Giants, the declines of Apple, Tesla, Alphabet, and Amazon all exceeded 4%, NVIDIA plummeted 7%, and the declines of Microsoft and Meta reached 3%. The overall chip stocks fell, and the Philadelphia Semiconductor Index fell by more than 2%, with a cumulative decline of 14% in the past three days.

The market generally believes that investors' expectations for the Seven Giants are too high. Once the performance fails to meet expectations, the stock price will drop significantly. In addition, the market has questioned the cost and return of AI investment, which has also aggravated the selling pressure on technology stocks.

Nevertheless, some analysts believe that this decline may be a good time to buy technology stocks because the long-term investment prospects of these companies in the AI field are still optimistic, and they occupy a strong position in the market.

It is worth noting that despite the decline in stock prices, the stock price of NVIDIA has still increased nearly twice this year, Microsoft and Amazon have increased by 5%, and Apple has increased by 7%. However, the stock price of Tesla has fallen by 21% this year.