$850 Billion Wipeout: Big Tech’s "Magnificent Seven" Hit by AI Sell-Off

Shares of the world’s largest technology companies, the so-called "Magnificent Seven," closed deep in the red last week as investors erased over $850 billion in market value. The broad sell-off, fueled by data from Yahoo Finance, targeted the primary winners of the artificial intelligence boom amid growing anxiety over persistent inflation and a "higher-for-longer" interest rate environment. The downturn was further pressured by a mix of regulatory setbacks and strategic shifts in AI infrastructure spending.

Meta Platforms led the decline, posting its sharpest weekly drop since October 2025 with an 11% slump following a court ruling on minor safety protocols. Alphabet also shed 9% after a jury finding of negligence regarding user protection. Microsoft fell 6.5%, marking its steepest quarterly decline since the 2008 financial crisis. Meanwhile, Nvidia and Amazon each slipped around 3%, with Tesla losing nearly 2%. The contagion spread to the semiconductor space; SanDisk and Micron Technology remained under pressure after Alphabet teased new research aimed at optimizing memory usage in AI, sparking concerns over future hardware demand.