Big Tech stocks were largely flat in premarket trading on Monday, recovering slightly after a turbulent week that erased more than $1 trillion from their combined market value. As of 6:40 a.m. ET, Oracle rose 1.6%, and Microsoft gained 0.8%. Meta slipped 0.2%, Amazon was unchanged, Alphabet declined 0.5%, and Nvidia dipped nearly 0.9% after rebounding 7.9% on Friday. The downturn followed a wave of earnings reports from major tech giants, where soaring capital expenditure (capex) forecasts sparked investor concern. Amazon, Alphabet, Microsoft, and Meta reported combined capex of approximately $120 billion in the fourth quarter alone, with projections suggesting total spending could reach $700 billion by 2026—exceeding the GDP of nations like the United Arab Emirates, Singapore, and Israel. Jim Reid, head of global macro research at Deutsche Bank, described the past week as the worst for the "Magnificent 7" since April, when U.S. tariff announcements triggered a market crisis and the group dropped 4.66%. Despite that, markets showed signs of stabilization by Friday’s close, with the Magnificent 7 rising 0.45% on the day, though Amazon’s 5.55% decline weighed heavily. Justin Post, a research analyst at Bank of America Securities, noted that while cloud companies are seeing improving margins, the sector faces potential volatility due to broader macroeconomic pressures. Still, he highlighted management confidence in demand forecasts, with leaders expecting data center capacity to be fully utilized by 2026. UBS Financial Services’ CIO head of U.S. equities, David Lefkowitz, said the market reacted negatively to Amazon and Alphabet’s capex guidance, which significantly exceeded expectations. He noted that this overshadowed strong cloud revenue growth reported by both companies. Nvidia CEO Jensen Huang told CNBC’s “Halftime Report” on Friday that the surge in tech spending on AI infrastructure is justified by what he described as “sky high” demand for computing power. Analysts continue to see room for growth in hyperscaler capital expenditures. Morgan Stanley said in a Monday morning note that as the number of monthly AI tokens processed grows exponentially, cloud revenue for AWS, Azure, and GCP will accelerate. This, in turn, is driving expanded data center commitments and stronger demand for components—factors that are likely to keep upward pressure on capex forecasts.