Big Tech “Magnificent Seven” stocks were headed for steep weekly losses on Friday morning as investors grew increasingly skeptical of whether the sky-high valuations and spending levels that have defined the AI buildout so far are sustainable.
Chipmaking leader Nvidia (NVDA) lost around 3% in the first hour of trading Friday morning, after a Trump administration official said that “there will be no federal bailout for AI” and following comments from CEO Jensen Huang that the US is poised to lose the AI arms race to China. Nvidia is down more than 9.5% over the past five days, on track for its worst week since April.
Shares in Meta (META) and Microsoft (MSFT), which have both disclosed massive spending plans for the year, lost around 2.5% and 0.5%, respectively. They have each lost more than 4% over the past five days.
The Magnificent Seven got its latest shock after the market closed on Thursday, when Tesla (TSLA) shareholders awarded CEO Elon Musk a pay package potentially worth $1 trillion. The EV maker and hardware company lost another 3.5% Friday morning.
Chipmaker Intel (INTC), which is not a Magnificent Seven member but is directly linked to several of the companies, was one of the only spots of green among Big Tech on Friday morning, up roughly 1%. Musk said at the Tesla shareholder meeting on Thursday that Tesla would need to build out a large amount of chipmaking capacity to power its autonomous EVs, and mused that the carmaker could work with Intel on that goal.
Rounding out the group, Alphabet (GOOG) and Amazon (AMZN) are both headed for losses of more than 1%, while Apple (AAPL) is headed for a gain of a bit over 0.2%, bucking the trend.
Chipmakers AMD (AMD) and Broadcom (AVGO) were both down more than 2% on Friday, headed for weekly losses of more than 9%$ and more than 5%, respectively.