Technology shares are under pressure as the market questions whether heavy spending on artificial intelligence will deliver adequate returns.
Nvidia, Meta Platforms, Apple, Microsoft, Alphabet, Amazon and Tesla have lost more than $2.3tn in market value during the month. The decline does not signal a broad rejection of technology. It reflects a sharper focus on capital discipline, rising infrastructure costs and the time required for AI investment to generate profits.
Semiconductor stocks have remained stronger. The Philadelphia Semiconductor Index rose 93% in the first half of 2026. This suggests that capital is shifting towards the companies supplying the chips and equipment needed to build AI systems.
South Korea is moving to strengthen its position in this market. Samsung Electronics and SK Hynix have committed a combined $590bn alongside government support. The plan covers chip production, data centres and robotics, with more manufacturing expected outside the Seoul region.
The scale of the programme could improve South Korea’s position in the global semiconductor supply chain. It also raises execution risk. Returns will depend on demand remaining strong and new capacity being added at the right pace.
AI expansion is also driving investment in electricity generation and grid infrastructure. US power and utility mergers and acquisitions reached $203.6bn in the first five months of 2026, already above the total for 2025. Announced data-centre investment more than doubled to $151.5bn.
Proposed deals included NextEra Energy’s $112bn enterprise-value acquisition of Dominion Energy and BlackRock’s Global Infrastructure Partners’ $33bn purchase of AES Corporation.
These transactions show that power supply is becoming a central part of the AI build-out. Data centres require large amounts of reliable electricity, creating opportunities for utilities and infrastructure owners. The main risks are regulatory delays, high financing costs and the possibility that capacity is built faster than demand develops.
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