Big Tech stocks fall sharply: Microsoft, Meta, Nvidia, Tesla hit

Microsoft Corp reported $37.5 billion in capital spending, mostly on AI data centers and chips. While Azure grew 39%, adoption of AI tools like Copilot is slower than expected, with only 15 million paid users out of 450 million. NVIDIA Corporation is closely tied to AI chip demand. If companies slow AI investments, NVIDIA is likely to feel the impact first.

Meta Platforms Inc and Alphabet Inc are facing court penalties. Meta was fined $375 million in one case, and another ruling involving both companies totaled $6 million. These cases focus on platform design and could lead to stricter rules. Investors are concerned that Big Tech may face more costs or changes to its business models.

Rising oil prices near $97 per barrel have renewed fears of inflation. Higher inflation could keep interest rates high, which hurts tech stocks that rely on future growth. Geopolitical tensions in the Middle East also make investors cautious.

Microsoft Corp shares closed at $360.50, down 1.49%. Meta Platforms Inc fell 3.31% to $529.42. NVIDIA Corporation dropped 1.27% to $169.07. Tesla Inc slipped 1.69% to $365.83. Intel Corporation, Grab Holdings Ltd, SoFi Technologies Inc, and MARA Holdings Inc also fell. Unity Software Inc was an exception, rising 10.16% to $18.87.

Investors are now looking for real results from Big Tech’s AI investments. Microsoft, NVIDIA, Meta, Alphabet, and Tesla must show profits or faster adoption to regain confidence. Analysts expect high volatility to continue. Companies that cannot prove their AI investments are paying off may face more selling pressure.