Shares in the Magnificent 7 tech stocks have slumped this week amid investors' concerns about massive spending by hyperscalers on artificial intelligence infrastructure amid uncertainty about the global economy due to the resumption of hostilities in the Iran war. The so-called Magnificent Seven tech stocks experienced their biggest one-day drop in over a year on Thursday, with Bloomberg reporting that an index of the group fell 4.8% and erased about $787 billion in market value – the steepest single day decline since April 2025. "Alphabet's higher investment outlook helps reinforce our view that the AI infrastructure buildout remains a durable theme," said Edward Jones senior analyst Brian Therien. The company's spending aims to enhance its AI capabilities as well as boosting production of Optimus humanoid robots, as well as robotaxis and autonomous vehicles. "Tesla has become the physical AI story, with the potential to bring artificial intelligence into consumers' everyday lives through autonomous vehicles and robotics.