The AI bubble burst: major tech companies have lost hundreds of billions in market value since the start of the year, but the consequences vary.

Artificial Intelligence: From Boom to Market Correction

*The AI boom began in the fall of 2022 when OpenAI introduced ChatGPT and drew investor attention to new technologies. Since then, the market capitalization of key AI players has grown almost without pause, but since the beginning of this year there is a noticeable decline in the stock prices of many companies.*

Key Changes in Market Capitalization
Company | Stock Price Change (since Jan.) | Decline/Growth in Market Cap
Microsoft –17 % | $613 bn → $2.98 tn
Amazon –13.85 % | $343 bn → $2.13 tn
Nvidia –2 % | $89.67 bn → $4.44 tn
Apple –6.4 % | –
Alphabet (Google) –2.3 % | –

*Microsoft and Amazon lost a significant portion of their market value. Microsoft’s decline is caused by increased competition from Google Gemini and Anthropic Claude, which made investors doubt its leadership in AI. Amazon reduced its capitalization after announcing plans to increase capital expenditures by more than 50 % this year, most of which will be directed toward AI infrastructure. At the same time, investors are unsure when these expenses will start generating tangible profits.*

*The company Nvidia, with the highest market cap among market participants, lost only 2 %. Despite the decline, its market value remains enormous – $4.44 tn. Apple and Alphabet also handed over to investors: Apple fell by 6.4 %, and Alphabet by 2.3 %.*

Positive Trends
Despite the overall correction, some issuers showed growth:

- TSMC – largest contract chip manufacturer

- Samsung Electronics – leading memory chip supplier

- Walmart – large retail chain

These companies continue to develop AI infrastructure and are expected to increase revenue and profit in the current boom period.

Conclusion
*The AI boom that started with ChatGPT led to significant changes in the stock market of technology giants. While most companies experience a capitalization correction, key players such as Nvidia and semiconductor manufacturers continue to strengthen their positions in the growing AI sector.*