Tesla Included in $2.3 Trillion Loss for Tech Giants in June
TSLA•The Magnificent 7, including Tesla, lost $2.3 trillion in market value in June as investors grew wary of AI infrastructure spending funded by debt. Meanwhile, Tesla’s semiconductor peers outperformed, with the Philadelphia Semiconductor Index climbing about 6% in June versus a 3.4% drop for the Magnificent 7.
1. Magnificent 7 June Losses
Tesla and six other leading technology firms collectively shed approximately $2.3 trillion in market capitalization during June, marking a 3.4% decline year-to-date for the group. Microsoft fell 20%, Nvidia declined about 13%, and both Apple and Amazon lost roughly 8% as investors re-evaluated large-scale spending plans.
2. AI Infrastructure Spending Concerns
Amazon, Microsoft, Alphabet and Meta have committed hundreds of billions of dollars to chip purchases and data center construction to support AI services, financing a significant portion through debt. The magnitude of these investments has raised questions about return on capital and long-term balance sheet health.
3. Semiconductor Sector Outperformance
In contrast, the Philadelphia Semiconductor Index surged about 6% in June and has climbed over 90% year-to-date. Strong purchasing activity by major tech firms spurred supply shortages that benefited chipmakers, amplifying the performance gap with the Magnificent 7.
