$2 Trillion Swings in Tech Stocks as AI Spending Hits $800 Billion Target

Nearly $2 trillion shifted between six megacap technology stocks last week as Amazon, Microsoft, and Alphabet gained about $1.5 trillion while Apple, Meta, and Tesla fell.

Amazon's stock climbed despite increasing its capital spending plan to around $220 billion for 2026 from $200 billion previously. Meanwhile, Meta raised the floor of its own spending range without pointing to outside customers, resulting in a quarterly free cash flow fall to $784 million from $8.55 billion a year earlier.

Jefferies sees megacap AI spending trending toward almost $800 billion over the next 12 months, with cloud revenue becoming the test for profitability. Amazon Web Services climbed 36.7% from a year ago, its quickest pace in 18 quarters, while Microsoft's Azure growth accelerated to 43%.

Tim Cook warned that memory shortages left Apple with few options, causing shares to drop close to 10% on Friday.