---
title: "‘Magnificent 7’ Lose USD797B in Market Cap in Single Day as Wall Street Worries About Excessive AI Investment"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293703480.md"
description: "The 'Magnificent 7' tech giants lost $797 billion in market cap on a single day, marking their biggest slump since April 2025. Wall Street firms expressed concern over excessive AI capital expenditures by companies like Alphabet and Tesla, which triggered panic selling. Alphabet's capex forecast rose to $205 billion, while Tesla CEO Musk cited massive spending. Consequently, Tesla plunged 14.5% and Alphabet fell 7.1%, dragging down the sector amid broader macroeconomic worries from renewed Iran conflicts."
datetime: "2026-07-24T05:04:37.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293703480.md)
  - [en](https://longbridge.com/en/news/293703480.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293703480.md)
---

# ‘Magnificent 7’ Lose USD797B in Market Cap in Single Day as Wall Street Worries About Excessive AI Investment

The "Magnificent 7" suffered their biggest single-day slump overnight (23rd) since tariff threats in April 2025, wiping out USD797 billion in market capitalization, as major Wall Street firms grew concern over massive spending by major technology companies in the AI sector.

Meanwhile, the renewed Iran conflict also cast a shadow over the global macroeconomic outlook. The Roundhill Magnificent Seven ETF (MAGS.US) , which tracks the "Magnificent 7", plunged 4.6% overnight (23rd).

Earnings released by Alphabet Inc. (GOOGL.US) and Tesla, Inc. (TSLA.US) after the close on Wednesday (22nd) triggered panic among traders and raised doubts over whether the AI-driven trade that propelled equities higher over the past three years can continue. Alphabet Inc. raised its capital expenditure forecast for this year to as much as USD205 billion. Meanwhile, Tesla CEO Elon Musk also said this year would be a year of massive capital expenditure.

Tesla, Inc. (TSLA.US) plunged 14.5%, marking its worst single-day performance since March last year, while Alphabet Inc. dived 7.1%, its largest decline since May 2025. Microsoft Corporation (MSFT.US) dropped 2.2%, Amazon.com, Inc. (AMZN.US) slumped 4.6%, and Meta Platforms, Inc. (META.US) also slid 3.4%. All three companies are scheduled to release earnings next week.  
(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

### Related Stocks

- [TSL.US](https://longbridge.com/en/quote/TSL.US.md)
- [TESL.US](https://longbridge.com/en/quote/TESL.US.md)
- [MAGS.US](https://longbridge.com/en/quote/MAGS.US.md)
- [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md)
- [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md)
- [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md)
- [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md)
- [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md)
- [META.US](https://longbridge.com/en/quote/META.US.md)

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