See a heat map of the S&P 500 index over the past week and you’ll see that the tech sector is bright red, indicating significant losses. Some of the biggest names in tech are flirting with double-digit losses, or well into it, in just one week.

• Advanced microdevices (NASDAQ: AMD) it has fallen by almost 21%.

• intuited (nanda: innt) down more than 17%

• Micron technology (name: mu) is down almost 13%.

• Microsoft (NASDAQ: MSFT) down 7%

• Nvidia (NASDAQ: NVDA) it has fallen 9% in one week.

• Salesforce (NYSE: CRM) has fallen by 12.5%.

The losses in tech stocks go on and on. It’s getting ugly.

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In fact, it’s been three months since the fall in US tech stocks. That’s all growth actions — Companies that are growing their earnings faster than the average business in their industry or the market as a whole.

And while growth stocks like the “Magnificent Seven” have led the market forward for much of the past three years, over the past three months investors have shown a new preference for shares of value — less volatile stocks of companies that grow more slowly but often have cheap valuations relative to their earnings and long-term growth potential.

The Russell 1000 value The index is up 8.4% since Halloween, while tech-heavy Russell 1000 Growth the index is down 3.7%. Market and economic analyst Ed Yardeni of Yardeni Research calls it “AI fatigue.”

For several years, investors relentlessly drove up tech stocks on seemingly relentless optimism that AI trading would pay off. But increasingly in recent months, and then dramatically in the past week, investors have gripped AI, doubting its ability to improve the financial performance of companies and the wider economy as significantly as previously believed.

Investors had driven tech stocks so high, so quickly, that the slightest disappointment, or just a hint, sent the stock tumbling. This was the case last week with Microsoft. The software giant posted results for its fiscal second quarter, which ended Dec. 31, 2025, beating Wall Street expectations on both sales and earnings.

But as there were signs that cloud revenue, revenue closely tied to AI, was slowing, the stock fell 11% on the day, the biggest one-day drop in the tech giant’s stock since March 2020.