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Tech stocks plunged on Friday as investors sold off chip stocks and other tech names amid growing bets that the Federal Reserve would hike interest rates this year. Quarterly results from chipmaker Broadcom (AVGO) earlier this week rattled the AI trade, but the hot jobs report on Friday spurred a broader tech rout.

Chip stocks were on track to wipe out $1 trillion in market value, as the once-beloved Wall Street trade began to crack. Nvidia (NVDA) stock dropped 6%, putting the company below a $5 trillion valuation, while other semiconductor companies, including Micron (MU), AMD (AMD), and Qualcomm (QCOM) fell by more than 9%.

Meta (META) stock also fell 5% on reports that the company is considering a big equity raise to fund its AI ambitions, similar to the one announced by Alphabet (GOOG, GOOGL) earlier this week.

The mega IPOs of Anthropic (ANTH.PVT), OpenAI (OPAI.PVT), and SpaceX (SPAX.PVT) this year continue to be a big focus for what they mean for the booming AI and tech trade.

First up will be the SpaceX IPO. Elon Musk's rocket and satellite company is seeking $75 billion, a record amount for any IPO. Also in the private markets, Anthropic (ANTH.PVT) filed confidential paperwork with the Securities and Exchange Commission to go public, beating rival OpenAI (OPAI.PVT) to the punch.

Google (GOOG, GOOGL) has agreed to rent computing capacity from SpaceX to power its AI capabilities.

In a filing, SpaceX (SPAX.PVT) said Google will pay $920 million per month to rent 110,000 Nvidia (NVDA) GPUs, CPUs, and memory, as well as related components from October 2026 through June 2029, with computing capacity beginning to ramp in September 2026.

If SpaceX doesn't make the GPUs available by Sept. 30, 2026, it has a one-month grace period to deliver on the capacity, or Google can kill the deal.

Both parties will also have the option to terminate the agreement with 90 days' notice after Dec. 31, 2026.

The filing comes just shy of a month after SpaceX agreed to rent all of its GPU capacity, more than 220,000 Nvidia chips, at its Colossus 1 data center to Anthropic (ANTH.PVT).

Read more here.

Meta (META) stock fell more than 6% in late afternoon trading on Friday following a report by The Financial Times that the company is considering a fresh equity sale to pay for its massive AI buildout.

The move would follow a similar one by Google parent Alphabet (GOOG, GOOGL), which initially planned to sell $80 billion in stock, but increased the amount to $85 billion due to intense investor demand.

Meta, like Amazon (AMZN), Google, and Microsoft (MSFT), is spending billions of dollars on AI chips and data centers. The four companies are expected to spend more than $720 billion in 2026 alone, with plans to increase that amount in 2027.

Meta CEO Mark Zuckerberg has been working to right the company's AI ship over the last year after the disappointing release of its Llama 4 model. Meta was scheduled to debut a larger Llama 4 Behemoth AI model, but ultimately held it back.

To address the matter, Zuckerberg has spent lavishly on AI talent, including a $14 billion "aquihire" Scale AI and its CEO Alexandr Wang, who now serves as Meta's chief AI office.

Read more here.

Nvidia (NVDA) is facing heavy selling today. The AI chipmaker and Tesla (TSLA) are helping to lead the “Magnificent Seven” stocks lower with declines of over 6%.

If these losses hold, the world’s largest company will no longer be a $5 trillion company by market cap. Nvidia is on track to wipe out $300 billion in market value in a single day as chip stocks pace to erase $1 trillion in value, as Yahoo Finance’s Jared Blikre points out in the blog below.

Nvidia’s market cap currently stands at $4.97 trillion, per Yahoo Finance data.

Yahoo Finance’s Jared Blikre reports:

Chip stocks are turning a rough session on Friday into a rout, with the semiconductor complex suffering its worst drop since April 2025, erasing more than $1 trillion in market value as the AI trade buckles.

The damage is heavy, but it is not evenly distributed.

A Yahoo Finance screen of semiconductor stocks shows the group wiping out about $1.2 trillion in market value Friday, with the 10 biggest decliners accounting for $923 billion of that hit.

The top 10 semiconductor decliners are erasing roughly $923 billion in market value Friday, led by Nvidia, TSMC, and Broadcom.

Nvidia (NVDA) alone is erasing nearly $280 billion in market value. Taiwan Semiconductor Manufacturing (TSM), Broadcom (AVGO), and Micron (MU) are each down more than $100 billion.

The Philadelphia Semiconductor Index (^SOX) is sliding more than 8%, and the iShares Semiconductor ETF (SOXX) is tracking a similar drop. Both are on pace for their worst day since the aftermath of Liberation Day in April 2025, as is the broader State Street Technology Select Sector SPDR ETF (XLK).

Read more here.

Microsoft (MSFT) and OpenAI (OPAI.PVT) were once close pals. But after years of tension between the two, they're now best described as frienemies.

On Tuesday, Microsoft drilled another hole in the duo's sinking relationship with the debut of its MAI-Thinking-1 AI model, a midsize model that the company said is intended for high-efficiency, low-token-cost situations.

In terms of capabilities, Microsoft claimed that MAI-Thinking-1 matches Anthropic's Claude Opus 4.6 on the SWE-Bench Pro coding benchmark. Independent testers, Microsoft said, also preferred its model to Anthropic's Sonnet 4.6. Anthropic debuted its latest flagship model, Opus 4.8, last week.

Microsoft's effort is part of its push to decrease its reliance on OpenAI's technology to power its various Copilot offerings. The Windows developer isn't ditching OpenAI, though. Instead, the company is continuing to move forward with a model-agnostic approach that allows users to select which AI models they want to tap into, including Anthropic's Claude.

Read more here.

Nvidia (NVDA) on Monday unveiled its RTX Spark chip for Windows laptops at its GTC Taipei conference. The superchip, which pairs a Grace CPU and Blackwell GPU, will debut in premium laptops from the likes of Asus, Dell (DELL), HP (HPQ), and Microsoft (MSFT) later this fall.

Top-of-the-line RTX Spark-powered laptops will likely line up with high-powered MacBook Pros and the most powerful Windows laptops. In other words, don't expect them to be volume sellers.

Nvidia said it will offer less-powerful RTX Spark chips for less-expensive laptops in the future but hasn't released any details yet.

Why the step into the laptop arena? AI, of course.

According to Gartner senior director and analyst Ranjit Atwal, Nvidia's chip, which can be outfitted with upwards of 128GB of memory, is a vision of what's to come in the laptop space.

"The PC … that they're pushing to the market is [effectively] a Trojan horse for where they think the puck will end up," Atwal said,

Read more here.

Apple's (AAPL) App Store facilitated a staggering $1.4 trillion in sales and billions in 2025, according to a study by the Analysis Group.

The independent study, commissioned by Apple, found that economic activity generated by the digital storefront has more than doubled since 2019, with digital goods and services growing 2.4x, physical goods and services increasing by 2.8%, and in-app advertising revenue climbing 2.9x.

Apple doesn't break out App Store revenue on its own. Instead, the company counts it toward its Services segment. The iPhone maker's second largest business, behind the iPhone, Services accounted for $109.1 billion of Apple's $416.1 billion in total revenue in fiscal 2025. The iPhone segment brought in $209.5 billion.

Out of the $1.4 trillion in sales generated by the App Store, the Analysis Group study found 149 billion came from digital goods and services, while $1.1 trillion came from physical goods and services.

China accounted for the largest share of billings and sales at $562 billion, followed by the US at $453 billion, Europe at $184 billion, and Japan at $52 billion.

Read more here.

Yahoo Finance’s Ines Ferré reports:

Semiconductor stocks, including Intel (INTC), AMD (AMD), and Arm Holdings (ARM), fell on Thursday as the broader chip sector came under pressure following a disappointing outlook from custom AI chip designer Broadcom (AVGO).

High-flying memory and storage names Micron (MU) and SanDisk (SNDK) also tumbled 5% and 1%, respectively.

A weaker-than-expected AI chip outlook from Broadcom, coupled with the company's decision to reiterate rather than raise its 2026 guidance, sent shares of the Palo Alto-based company plunging roughly 15%.

The sell-off rippled across the semiconductor sector, with investors heading for the exits after a blistering rally that pushed many chip stocks to record highs.

Read more here.

Broadcom (AVGO) is dragging the chip trade lower after earnings, with the stock tracking its worst day since January 2025 in premarket trading.

The issue was the AI outlook: Broadcom's next-quarter AI revenue guide came in below elevated expectations, even as overall revenue guidance topped estimates.

The selling is hitting the whole semiconductor complex.

The iShares Semiconductor ETF (SOXX) is tracking its worst day since March 26 — roughly two months ago — while the Roundhill Memory ETF (DRAM) is down 6%, on pace for its second-worst day ever.

The sell-off is not stopping at Broadcom.

Marvell (MRVL), Super Micro (SMCI), Arm (ARM), Micron (MU), Semtech (SMTC), Navitas (NVTS), and Wolfspeed (WOLF) are all down around 5% or more, while Nvidia (NVDA), TSMC (TSM), AMD (AMD), and Intel (INTC) are also lower.

The test is whether this stays a Broadcom earnings reset or turns into a broader chip reversal. The SOX hasn't logged more than two straight down days since the March 30 market low, with dip buyers showing up fast each time.

SpaceX (SPAX.PVT) may be a generational business. History says IPO day can still be a terrible entry point.

Across more than 9,000 operating-company initial public offerings from 1975 to 2021, 60% of returns finished flat or lower three years after the first close, while only 16% more than doubled. The average return was positive — but only because a small group of moonshots pulled it higher.

The data comes from Jay Ritter's IPO research at the University of Florida, which tracks traditional companies going public — not SPACs, REITs, closed-end funds, or ADRs. In other words, this is closer to the IPO market most investors imagine when they hear about a big private company finally listing its stock.

In a filing on Wednesday, SpaceX (SPAX.PVT) confirmed it’s seeking to raise $75 billion from its initial public offering, a record amount for any IPO.

Yahoo Finance’s Pras Subramanian reports:

In the filing, the company said it would offer 555,555,555 shares at $135 each, raising $75 billion. That would amount to 4.2% of the entire float, with the remaining 95.8% held by CEO Elon Musk and other insiders. SpaceX authorized the underwriters to sell additional shares if needed, bringing the total raised to $85.7 billion.

At that share price, it would give SpaceX a hypothetical market cap of around $1.785 trillion.

SpaceX plans to use the proceeds for purposes "including the expansion of our AI compute infrastructure, enhancements to our launch infrastructure and launch vehicles, increases in the scale and capacity of our satellite constellations, and any remaining amounts for general corporate purposes."

Read more here.

Alphabet’s (GOOG, GOOGL) planned $80 billion stock sale puts a new price tag on the AI race: Even Google’s cash machine is tapping Wall Street to keep up.

Investors noticed. Alphabet stock fell 3.9% Monday, its worst day in two months, as Wall Street digested what the deal says about the rising cost of AI.

For years, Alphabet spent more buying back its own stock than it spent on capital expenditures — the buildings, data centers, servers, and equipment that keep Google running.

Now AI has blown up that budget.

Alphabet expects capital expenditures to roughly double this year as it races to build more computing power for AI. That pushes spending on infrastructure far above the cash Alphabet has been sending back to stockholders through stock buybacks and dividends.

Read more here.

Yahoo Finance’s Brian Sozzi reports:

The market has finally woken up to the reality that in order to get the most out of the artificial intelligence boom, you have to have the infrastructure in place to pull it all together.

And that has networking leader Cisco (CSCO) back in favor on the stock charts.

“Infrastructure is definitely cool,” Cisco CEO Chuck Robbins said on Yahoo Finance’s Opening Bid (video above) from the company’s Cisco Live conference.

“Everything that's happened over the years has always required high-performance infrastructure,” Robbins added. “I think to some extent, along the way, we forgot about it because it just works. But building the silicon, building the optics, all the underlying technology that allows the global economy to operate candidly on a daily basis, as long as everything's working, people don't think about it very much. I think now with these massive build-outs to train the models to provide inferencing, telecom providers building out their infrastructure to support the traffic flows, enterprises modernizing their infrastructure to be prepared and to deal with concerns over some of these emerging models, secure infrastructure is very important right now.”

Read more here.

Meta (META) will soon begin selling access to an AI agent in a new monetization path for the tech giant increasingly pushing into AI.

As of Wednesday, companies will now be charged for access to the “Meta Business Agent,” Bloomberg reported, citing a company spokesperson. The agent’s primary role focuses on communication with a business’s customers on Meta’s communications platforms WhatsApp, Messenger, and Instagram.

Meta shares rose 3.4% on the news.

In the future, the agent will be able to complete tasks such as managing users’ calendars and putting together market research, Bloomberg reported.

Smaller businesses will have to pay for a subscription to use the agent, while larger businesses will pay Meta for the token costs powering the service.

A similar service has been offered before, but it was free of charge, Bloomberg reported.

Yahoo Finance’s Brian Sozzi reports:

The artificial intelligence spending for Big Tech has only just begun. Goldman Sachs strategist Amanda Lynam has put some fresh numbers on hyperscaler capex spending on AI, and it’s eye-popping.

Goldman now expects a combined $5.3 trillion of capex spending for the four largest hyperscalers — Meta (META), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) — from fiscal year 2025 to fiscal year 2030. Prior to the start of first quarter earnings, this figure stood at $4.5 trillion.

The baseline aggregate capex estimate stands at $7.6 trillion between 2026 and 2031, across compute, data centers, and power.

Google, Amazon, Microsoft, and Meta alone collectively plan to allocate $725 billion to capital expenditures in 2026 — up a staggering 77% from last year’s already record-breaking $410 billion.

Amazon is projecting $200 billion in capital expenditures, Alphabet is targeting $175 billion to $185 billion, Meta is guiding $115 billion to $135 billion, and Microsoft is tracking toward $190 billion for the calendar year.

Read more here.

The cybersecurity industry is racing to ensure powerful new AI models like Anthropic’s (ANTH.PVT) Mythos don’t create a flood of cyberattacks.

To address at least a part of that, Cisco (CSCO) on Tuesday debuted its new Live Protect platform.

A kind of stopgap cybersecurity measure for networking systems, Live Protect allows cybersecurity professionals to deploy targeted “shields” against specific exploits to prevent attackers from breaking into victims’ networks.

In traditional settings, cybersecurity workers might have to update a network system a few times a year. But Mythos changed that.

Anthropic unveiled Claude Mythos Preview last month, sending shockwaves through the tech industry. According to the company, the AI model was wildly adept at hacking software, despite not being designed to do so.

Read more here.

Microsoft (MSFT) on Tuesday unveiled a collection of seven AI models developed by its Microsoft AI Superintelligence Team as part of the company’s annual Build Conference.

The models, which include the company’s first reasoning model, MAI-Thinking-1, come as Microsoft looks to further diversify its AI capabilities and lean less on OpenAI’s (OPAI.PVT) models.

According to Microsoft, MAI-Thinking-1 is a midsize AI model designed for high efficiency and low-token cost. The company said independent raters preferred MAI-Thinking-1 to Anthropic’s (ANTH.PVT) Claude Sonnet Opus 4.6, its midrange model, and that MAI-Thinking–1 matched Opus 4.6’s coding ability, albeit in a benchmark.

In addition to MAI-Thinking-1, Microsoft debuted its MAI-Image-2.5 image-generating model, MAI-Transcribe-1.5, MAI-Voice-2, and MAI-Code-1.

While Microsoft was an early investor in OpenAI and remains one of its most prominent backers, the relationship between the two companies has become strained over the years.

Read more here.

Microsoft (MSFT) is turning to AI to help protect users from attacks and hacks, leveraging a new class of models that can find and exploit software flaws faster than any person could on their own.

Part of that includes the company’s new Microsoft Security multimodal agentic scanning harness, or MDASH. The platform, which Microsoft said is in an expanded preview, uses AI agents to scan for software vulnerabilities that hackers can exploit.

Speed is a key component of cybersecurity. The faster a company can detect a software flaw, the sooner it can fix the flaw before hackers can exploit it.

“AI brings a lot of superpowers to defenders, but also AI in the hands of cyber attackers is a very powerful tool,” Vasu Jakkal, corporate vice president of security at Microsoft, told Yahoo Finance.

“The time between vulnerability discovery to exploitation essentially collapses … and if we don’t build on this technology with context for defenders, that is going to continue to be a very asymmetric cyber war across the industry,” she added.

Amazon (AMZN) plans to offer Prime customers megadeals earlier than usual this year as higher fuel costs strain shoppers’ budgets.

The e-commerce giant announced its annual Prime Day event will kick off on June 23 and run through June 26. The sales event is typically held in July.

The last time Amazon held its global savings event in June was in 2021. The company said that after taking into account the World Cup and the 250th anniversary of American independence, the week in June felt right.

“Stating it bluntly, more savings now is better than more savings later, and so we're not … shying away from the fact that … having the event sooner means people can save more money sooner,” Jamil Ghani, vice president of Prime, told Yahoo Finance.

Read more here.

Alphabet (GOOG, GOOGL) stock edged 2% lower in premarket trading after the company announced late Monday that it plans to sell $80 billion in stock to help pay for its artificial intelligence build-out.

In a statement, the company said it will offer $30 billion in underwritten public offerings and $40 billion directly to Class A common shareholders and Class C capital shareholders over time, beginning in the third quarter of this year.

The remaining $10 billion was sold to Berkshire Hathaway, the global holding company founded by Warren Buffett and that is now led by Greg Abel.

Alphabet said the proceeds will be used “for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute.”

“The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” it added. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”

Alphabet plans to spend $180 billion to $190 billion in capital expenditures in 2026, and capex is expected to “significantly increase” from that level in 2027.