Tech NVDA, AMD, MU $1.6 Trillion Wipe Out
Tech Selloff Deepens
On Tue, 28 Jul 2026, selloff in US technology stocks gathered pace.
It took the sector’s market value loss to about $1.6 trillion in just over 5 trading sessions.
It comes at a time when investors continued to question (a) heavy AI spending, (b) disappointing earnings and (c) rising capex commitments by the industry's largest companies.
This latest wave of selling pushed the Nasdaq-100 into correction territory during the session, marking a decline of more than -10% from its most recent record high.
The tech index, which tracks the 100 largest non-financial companies listed on the Nasdaq exchange, finished the day -1.0% lower.
As pointed out in my previous post (click here ! to savour), $Tesla Motors(TSLA)$ remained among the biggest laggards after losing more than -16% over the past 5 trading sessions.
Chipmakers also bore the brunt of the selloff as concerns over AI-related spending spread across the semiconductor sector.
Shares of $SanDisk Corp.(SNDK)$ fell -14%, while AMD, Arm Holdings, Micron Technology and Seagate Technology each dropped more than -8%.
$Dell Technologies Inc.(DELL)$, a major supplier of AI data centre servers, declined -8.1%, while comeback kid $Intel(INTC)$ was not spared either, losing -5.8%, despite a commendable Q2 earnings.
Similarly, over the past five sessions, Sandisk, T-Mobile, Meta Platforms, Alphabet and Amazon have declined between -7% and -10%.
Weakness in technology shares has knocked $NVIDIA(NVDA)$ from the top spot among the world's most valuable listed companies.
On 27 Jul 2026, AAPL reclaimed the pole position for the first time since April 2025.
Investors are (now) turning their attention to quarterly earnings from large technology companies, particularly spending plans (capex) from META and AMZN.
AAPL Reclaims Top Spot
Recently, NVDA came under pressure as investors reassessed the costs associated with expanding AI infrastructure.
Its share price decline enabled AAPL to close the session with a larger market capitalisation.
It was only yesterday that NVDA had held the title of the world's most valuable listed company since June 2025 after overtaking MSFT.
The chipmaker also briefly surpassed a $5 trillion market value in October 2025.
Despite the recent weakness, NVDA shares are still up +4.32% YTD (as of 28 Jul 2026 closing - see below), while AAPL has gained +25.49% YTD.
In the end, investors have favoured AAPL's strategy of limiting direct spending on AI infrastructure by leasing computing capacity instead of investing heavily in its own.
While NVDA continues to benefit from demand for AI processors, investor interest has broadened to include memory chips and other data centre components.
Companies such as MU, SKHY & SNDK have gained from increased AI infrastructure spending.
Earnings & Capex in Focus
On 23 Jul 2026, selling accelerated after quarterly results from GOOG and TSLA, as both of them failed to reassure investors:
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GOOG fell by -7.0% after raising its full-year capex forecast to more than $200 billion.
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TSLA dropped nearly -15.0% after reporting profit below expectations and signalling that operating expenses would continue to rise.
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Honestly, TSLA past few quarters’ earnings have not exactly been stellar. Just that some fanboys and fangirls decided to turn a blind eye and regarded sub-standard earnings as “acceptable”. (see below)
TSLA - missed metrics
Recent decline reflects investor concerns over (a) rising AI investment costs, (b) weaker earnings and (c) increasing capex across the technology sector.
Markets are also preparing for a week of key earnings from major tech giants.
Investors are expected to closely watch capex plans from META & AMZN, which could influence the next move in technology stocks.
Bloomberg estimates show GOOG, MSFT, AMZN & META are expected to spend about $724 billion on capex in 2026 and nearly $950 billion in 2027, a +31.22% annual increase in capex spending.
Despite outperforming many of its peers, AAPL has challenges of its own too.
Higher demand for memory chips (used in AI computing) has increased production costs, prompting the company to raise prices for products including MacBooks and iPads.
Investors are assessing whether those price increases could weigh on demand & profitability.
Rapid expansion of AI infrastructure is also reshaping business models across the sector.
According to Bloomberg, GOOG reported negative cash flow in Q2 2026, despite generating substantial revenue, underscoring investor concerns about the financial impact of elevated AI spending.
My viewpoints : (mine only)
The true risk facing markets today is not that AI will fail to deliver on its promise.
Rather, it is the staggering economic cost of building its foundation will outpace society's ability to monetize it in real time.
If I am not mistaken, the market is beginning to distinguish between:
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Growth that creates value and
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Growth that simply consumes capital.
In the long run, the winners will be those that can turn technological ambition into durable returns rather than just larger budgets. Agree ?
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Looks like market didn't like it's weaker than expected Q4 revenue forecast.
Shouldn't analysts look at the current economic situation in the US and globally, in part thanks to the Middle East unrest cause by Trump government that's driving inflation (rising prices) into every country's economy.
And still expect another set of stellar earnings results?
Where's the commonsense?