Quick Read – MSFT is down 22% YTD while NVDA holds a 7% gain, as hyperscaler capex now consumes 98% of operating cash flow. – QQQ finished June nearly flat while the Mag 7 lost $2.3 trillion, confirming money rotated within tech rather than fled it. – Cloud giants pour billions…
to Anthropic and OpenAI, which spend it back on cloud compute, manufacturing circular revenue with no proven external demand. – The Magnificent 7 erased $2.3 trillion in market cap in June alone, the largest monthly loss ever for the group, even as the Nasdaq heads for its best quarter since 2020. CNBC’s MacKenzie Sigalos framed the split neatly on June 30: “the mag-7 erased 2.3 trillion in June alone, the largest monthly market cap loss ever for the group.” The tape is telling you something specific about who is paying for AI, and who is getting paid
The selloff was concentrated in the hyperscalers writing the biggest checks. Microsoft (NASDAQ:MSFT) fell -19% in June, its worst month in years. Amazon (NASDAQ:AMZN) dropped -8.77%, Meta Platforms (NASDAQ:META) shed -6.11%, and Alphabet (NASDAQ:GOOGL) gave back -4.99%.
Even NVIDIA (NASDAQ:NVDA), the supplier everyone else is feeding, slipped -10.72%. Apple (NASDAQ:AAPL) was down -5.53%. Yet the Nasdaq-100, via Invesco QQQ Trust (NASDAQ:QQQ), was essentially flat for the month at -0.85%.