Big Tech Drives Market Gains Amid Fears Of Overheated AI Valuations

Benzinga

Big Tech drove markets as investors balanced record profits with soaring AI investments. Amazon’s earnings fueled Nasdaq gains, while Nvidia hit a $5 trillion valuation and Apple and Microsoft each topped $4 trillion. Analysts cautioned that rising AI spending could signal a growing tech bubble.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Big tech stocks swung markets last week as investors weighed soaring AI investments against

00:08record profits, according to the Wall Street Journal. Amazon's upbeat earnings lifted the

00:13Nasdaq to a seventh straight monthly gain, while Microsoft and Meta lost ground over spending

00:18concerns. NVIDIA became the first $5 trillion company, and Apple and Microsoft each closed

00:24above $4 trillion for the first time. Analysts warned of a potential AI-driven bubble,

00:30as Meta, Alphabet, Microsoft, and Amazon pledged higher 2026 AI spending. The Magnificent Seven

00:37now make up 38% of the S&P 500, with tech giants adding debt to fund buybacks and AI expansion.

00:43For all things money, visit Benzinga.com.

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