Amazon and Microsoft Lead Tech Decline as AI Concerns Deepen
According to CNBC, major technology stocks ended the week deep in negative territory during the third week of November 2025. Amazon and Microsoft led losses among the Magnificent Seven, falling 6% and 7% respectively. Nvidia declined despite CEO Jensen Huang calling chip sales "off the charts" during an earnings call. Oracle dropped 11% for the week.
The semiconductor sector experienced broader pain. Advanced Micro Devices and Micron both fell more than 16%. Marvell Technology declined 10%. Alphabet stood alone as the only Magnificent Seven member posting gains, rising 8% for the period.
Why This Matters
The selloff represents a shift in investor confidence despite strong earnings reports. Nvidia posted results that exceeded analyst expectations, yet markets reversed gains within 24 hours. This pattern suggests concerns extend beyond individual company performance.
Fortune reported that Nasdaq 100 futures fell 2.38% following the Nvidia earnings reversal. The S&P 500 declined 1.56% during the same period. The VIX volatility index jumped 14%, reflecting increased investor anxiety about market stability.
Individual investors face direct impacts through retirement accounts and portfolios concentrated in technology holdings. The Magnificent Seven companies represent approximately 40% of the S&P 500's total value. Sharp declines in these stocks create outsized effects on broader market performance and investor wealth.
Industry Implications
Survey data reveals growing institutional skepticism about AI valuations. A November 2025 Bank of America Global Fund Manager Survey found 45% of asset managers identified an AI bubble as their biggest concern. The figure represents a jump from 33% in the prior month. An additional 53% of respondents stated AI stocks already exist in bubble territory.
CNBC reported that fund managers flagged corporate overinvestment for the first time in 20 years. The survey captured responses from 172 managers controlling $475 billion in assets. Net 20% stated companies deployed capital too aggressively, primarily citing concerns about AI infrastructure spending.
Questions center on return timelines for massive capital expenditures. Technology companies are spending $400 billion annually on AI infrastructure, according to Fortune. OpenAI generates $13 billion in revenue while losing billions quarterly. The disconnect between spending and returns creates pressure on valuations across the sector.
Bridgewater founder Ray Dalio stated publicly that markets are "definitely in a bubble." Other prominent investors have taken defensive positions. Peter Thiel's fund reportedly sold its entire Nvidia stake in the third quarter. These moves by sophisticated investors add weight to bubble concerns.
The correction affects global markets. Asian semiconductor stocks declined in parallel with US names. European technology shares followed similar patterns. This interconnection means regional diversification provides limited protection from AI-related volatility.
Sector rotation has begun. Fund managers increased allocations to healthcare, consumer staples, and banking stocks. Technology allocation hit a six-month low in November. This shift suggests investors are repositioning portfolios toward defensive sectors while AI companies work to prove their business models can generate sustainable profits.
Further Reading
For deeper insights into regulatory frameworks and adoption patterns across different regions, our Alternative Financial Systems Index provides comprehensive data on how various countries approach emerging technology sectors. The index tracks policy developments and market metrics across 50 nations.
