AI companies lost $190 billion in stock market value late Tuesday after quarterly results from Microsoft, Alphabet and Advanced Micro Devices failed to impress investors who sent their shares soaring. .
The tech giant’s reported selloff after the bell comes after hopes of embedding technology throughout the company pushed its stock to record highs following the AI-driven stock market rally in recent months. This highlighted the heightened expectations of investors.
Alphabet fell 5.6% after Google’s parent company’s December quarter lost advertising revenue Expectations.
Alphabet also said spending on data centers to support its AI plans would jump this year, highlighting the costs of fierce competition from AI rival Microsoft.
Driven by interest in AI, Google Cloud’s revenue growth slightly exceeded Wall Street’s targets, but Microsoft’s Azure grew even faster.
Microsoft wins Analysts forecast quarterly earnings as new AI capabilities helped attract customers to its cloud and Windows services. However, the company’s stock fell 0.7% in extended trading after hitting an intraday high early Tuesday.
Optimism about AI has pushed Microsoft’s stock price above $3 trillion this month, overtaking Apple.
Chipmaker Advanced Micro fell 6% as its stock price rose. forecast Despite expecting strong sales of AI processors, first-quarter sales were lower than expected.
Nvidia’s stock price soared 27% in January after more than tripling last year on optimism about AI, but some of that gain was given back in extended trading, ending the year by more than 2%. It fell.
Server maker Super Microcomputer, another company that benefited from AI-related demand, fell more than 3%.
By early Tuesday, it had risen to an all-time high following the delivery. Quarterly performance deteriorated significantly The day before.
