US Tech groups aligned with artificial intelligence boom have lost $1.2 trillion in market value since last Friday, setting Wall Street for their worst week since Donald Trump’s “Liberation Day” tariffs in April 2025.

The higher they are deeper they fall. Nvidia, the world’s most valuable company, down 4 per cent with a market capitalisation loss of nearly $500bn, a week after its $5tn valuation, Meta who owns Facebook, Instagram, WhatsApp, Messenger and Threads, Palantir, and Oracle has fallen $1.2tn since the end of last week. Microsoft, Amazon, Alphabet and Broadcom all lost considerable ground.

The tech stock stumbled less than have left Nasdaq on course for a weekly loss of 4.6 per cent, its worst five-day run since the Index fell 10 per cent after Trump launched his trade tariffs.

AI-related Capex are susbstantial, debt-financed reminiscent of the 2000 tech bubble burst frenzy.

Alphabet, Amazon, Meta and Google have a combine capital expenditure in the third quarter of $112bn and also the sector is borrowing billions to fund the AI expansion.

Sam Altman’s Open AI commented only this week that their start-up might look to the US government for a funding backup which probably triggered speculation on its finances.

The alliance between chipmakers Nvidia, AMD and Broadcom, as well as cloud tie-ups with tech giants Microsoft, Amazon and Google, amounts to unexpected growth in the coming years is now undermined with the start-up.