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Magnificent Seven Lose About $3 Trillion in June Market Downturn

Investors are questioning whether heavy AI and cloud spending will produce near-term revenue or profit and are awaiting quarterly reports for proof.

Las acciones de las 'Siete Magníficas' con mejor rendimiento en el año son Nvidia (11.9%), Alphabet (11.7%) y Apple (9.3%). Foto: AP.
Mes difícil: Las Siete Magníficas perdieron $3 billones en capitalización bursátil en junio.

Overview

  • The seven largest U.S. tech firms — Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla — saw roughly $3 trillion wiped from their combined market value during June.
  • Market watchers point to a sharp rise in capital spending for AI, cloud and data centers as a trigger for the sell-off, with the group reporting about $136 billion in combined capex in the last reported quarter.
  • Microsoft experienced the largest single decline, losing about $723.6 billion in market value and seeing shares fall roughly 21.6% in June.
  • Performance within the group has diverged: Nvidia has shown relative strength year-to-date while companies such as Meta, Tesla and Microsoft have lagged as investors press for clearer monetization timelines.
  • Exchange-traded funds tied to the cohort fell in June and analysts say upcoming quarterly results will be the key test to show whether these investments translate into revenue growth, greater efficiency and durable profits.