Amazon plunges 9%, continues Big Tech's $1 trillion wipeout as AI bubble fears ignite sell-off
Summary
CNBC reports that Amazon shares dropped over 9% as concerns about AI spending sparked a broader sell-off, contributing to more than $1 trillion in Big Tech market-cap losses. The piece highlights massive AI infrastructure capex by hyperscalers, with Amazon signaling a $200 billion cloud-focused investment and overall AI expenditure forecast around $660 billion for the year. Analysts warn that while long-term AI investments may pay off, near-term returns are uncertain and volatility could persist as capacity expands.