Tech Stocks Volatile as AI Investments and Anthropic Release Shake Markets

Recent developments in artificial intelligence and major investment plans by leading technology companies have contributed to notable shifts in global stock markets, particularly affecting software and technology sectors.

Anthropic’s introduction of advanced plugins for its Claude AI model coincided with a pronounced drop in software-as-a-service and large technology company stock prices. This market movement resulted in losses of up to $1 trillion in market value before partial recovery was observed.

Amazon, Google, Microsoft, and Meta announced plans to allocate a combined $660 billion toward AI-related investments in 2026. These announcements were followed by a decline of nearly $900 billion in market value for major technology firms, marking the worst week for the Nasdaq Composite Index since April of the same year.

Amazon stated that it would undertake a $200 billion capital expenditure plan in 2026 to expand its AI infrastructure. Following this announcement, Amazon’s share price declined by 9 %.

What the numbers show

• Anthropic’s Claude AI plugin release contributed to up to $1 trillion in market value losses
• Amazon, Google, Microsoft, and Meta announced $660 billion in AI investments for 2026
• Oracle’s stock fell 5 % in one day, with Larry Ellison’s net worth dropping by $49 billion
• Hedge funds gained $24 billion by short-selling software stocks during the downturn
• Global cloud spending increased by 69 % in 2025

During the period of market volatility, Oracle co-founder Larry Ellison’s net worth decreased by approximately $49 billion as Oracle’s stock price fell by 5 % in a single day. Collectively, leading U.S. software executives experienced a reduction of about $62 billion in net worth, while hedge funds profited by $24 billion through short-selling software stocks during the $1 trillion industry market-value decline.

Despite the sell-off, global cloud spending rose by 69 % in 2025, indicating continued demand for AI-related infrastructure. This growth in cloud spending occurred alongside concerns about the impact of large-scale AI investments on company valuations.

After three days of declines, U.S. technology stocks and bitcoin rebounded, with the Nasdaq Composite Index rising by 2.2 %. Chipmakers including Nvidia, Broadcom, and Intel led the recovery, with Nvidia’s stock increasing by 7.8 %.

Industry reaction

Wall Street analysts from William Blair and Bank of America stated that the recent technology sector sell-off driven by AI-related concerns was not supported by company fundamentals. These analysts likened the episode to a previous short-lived market downturn.

Analysts also noted that, despite recent volatility, the underlying demand for AI infrastructure remains strong, as reflected in the substantial increase in global cloud spending during the previous year.

* This article is based on publicly available information at the time of writing.