Shares of tech giants have fallen by almost $200 billion after investors' interest in AI declined
Kyiv • UNN
Investors are losing confidence in tech giants such as Microsoft, Alphabet, and AMD after their quarterly results failed to meet high expectations for artificial intelligence, sending their market value plummeting by $190 billion.
Artificial intelligence companies have lost $190 billion in market value after Microsoft, Alphabet, and Advanced Micro Devices published quarterly results that failed to impress investors who had expected their stocks to rise rapidly. Reuters reports UNN.
Details
The sell-off in stocks following the tech giants' reports underscored investors' inflated expectations in the wake of artificial intelligence, which pushed stocks to record highs on promises to integrate the technology into the corporate landscape.
Alphabet shares fell 5.6% after advertising revenue in December fell short of expectations.
Alphabet also said that its spending on data centers to support its AI plans will increase this year, highlighting the costs of fierce competition with rival Microsoft in the AI space.
Microsoft beat analysts' forecasts for quarterly revenue as new AI features helped attract customers to its cloud and Windows services. However, the company's shares fell 0.7% in extended trading after briefly hitting a record daily high on Tuesday.
Optimism about AI pushed Microsoft's stock market value above $3 trillion this month, eclipsing Apple.
Chipmaker Advanced Micro fell 6% after its first-quarter revenue forecast failed to materialize, even though it predicted strong sales of its AI processors.
Shares of Nvidia, which rose 27% in January after more than tripling last year on optimism about AI, also gave back some of those gains in extended trading, falling more than 2%.
Server maker Super Micro Computer, another company that has benefited from AI-related demand, is down more than 3%. Earlier on Tuesday, it had risen to a record high after posting stunning quarterly results the day before.
