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…
