Microsoft Slips, But Big Tech Adds $420 Billion to the Stock Market

In just three days, U.S. markets saw a rare surge: eight of the largest tech companies added $420 billion in market value. A rapid move that put Google back in the spotlight and confirmed how regulatory decisions and advances in artificial intelligence now shape Wall Street.

Google at the center of the rebound

The decision of Judge Amit Mehta in the Google antitrust case triggered a positive shockwave in the markets and highlights Google searches on memecoins that have sparked persistent curiosity. Instead of dismantling the giant or imposing drastic measures, the court simply required Google to share certain search data with its competitors.

The result: Alphabet shares jumped 9% in a single day, sending the stock sharply higher. Apple also benefited, as its strategic agreement with Google — keeping Alphabet’s search engine as the default on the iPhone — remains intact.

This regulatory clarity was enough to lift a “dark cloud” hanging over Big Tech. Investors took it as an implicit green light to continue their business models, boosting confidence and stock prices.

Broadcom and AI: the Stock Market rewards innovation

Beyond Google and Apple, Broadcom also stood out. The semiconductor giant announced a $10 billion deal with a major client, which many analysts suspect is OpenAI.

This announcement propelled Broadcom’s share by 13% in one week, adding billions to its already colossal capitalization. In one year, the stock jumped 120%, a rare pace in the stock market world for a company of this size.

The takeaway was clear: AI is no longer just a promise but a powerful force reshaping valuations across the tech sector. Markets are now a barometer of the rapid adoption of generative AI, with Google, Meta, Apple, and Broadcom at the forefront.

Nvidia, Microsoft and Tesla: contrasts

While some gained billions, others faltered. Nvidia lost 4% over the week, its fourth straight decline — paradoxical given it remains the world’s most valuable company at over $4 trillion.

Microsoft followed a similar trend, logging a fifth consecutive weekly loss despite solid fundamentals. Many investors appear to be taking profits after a stellar 2024.

Against the tide, Tesla surprised with a 5% rebound. The company’s move to reinstate Elon Musk’s massive compensation plan — potentially worth $1 trillion — reignited market enthusiasm, especially around its ambitions in AI and automotive. If successful, the plan could nearly double Tesla’s market cap to $2 trillion.