Amazon et al AI Spending Sentiment: Tech Shares Drop as AI Capital Plans Intensify, 2/7/2026

Tech stocks face heightened investor anxiety as major companies announce aggressive AI capital spending. Amazon (AMZN-US) shed 5.5% after a $2,000 billion AI investment plan; Alphabet (GOOGL-US) fell 2.5% as planned spending may more than double, and Meta Platforms (META-US) dropped 1.3%. Industry analysts warn of pressure on profitability and the long-term competitiveness of software firms as AI infrastructure is still expected to grow for 7-8 years, according to NVIDIA CEO HuangRM. Global semiconductor sales are forecast to top $1 trillion in 2026, up 25.6% from $7,917 billion in 2025, driven by expanding AI data center investments. Bitcoin (BTC) staged a technical rebound to above $70,000 amid ongoing deleveraging and institutional outflows despite a sharp sell-off following FTX's collapse. Macroeconomic timing also shifts toward midsize U.S. equities ahead of midterm elections, with major banks and strategists citing policy-driven cost pressures on energy, healthcare, banking, and large techs as key headwinds.