Microsoft's stock price suffered a sell-off on Thursday, with its market value plummeting by $357 billion, the second-highest single-day loss in stock market history. Affected by the financial report released after the market closed on Wednesday, the software giant closed down 10%, the largest decline since March 2020. The financial report showed that Microsoft's artificial intelligence (AI) spending hit a record, while the growth of its core cloud business unit slowed down.
The only time in history that the market value has shrunk by a larger amount in a single day than this was the record of $593 billion set by Nvidia last year after DeepSeek launched a low-cost AI model. Data compiled by Bloomberg show that the change in Microsoft's market value exceeds the market value of more than 90% of the S&P 500 stocks themselves.
Some other technology stocks are feeling the chill, too. Alphabet and Nvidia both lost more than $100 billion in market value on Thursday. Alphabet's stock price subsequently rebounded, eventually closing up 0.7%, while Amazon's stock price fell 0.5%.