The stock market value of AI-related corporations tumbled by $190 billion after Microsoft, Alphabet, and Advanced Micro Devices published quarterly results that failed to thrill investors
AI-related firms’ stock market value fell by $190 billion late Tuesday after Microsoft (MSFT.O), Alphabet (GOOGL.O), and Advanced Micro Devices (AMD.O) reported quarterly results that failed to excite investors who had sent their prices soaring.
The selloff following the tech titans’ earnings releases after the bell highlighted investors’ lofty expectations following an AI-fueled stock market boom in recent months that catapulted their shares to record highs on the promise of adopting the technology throughout the corporate landscape.
Alphabet fell 5.6% as Google’s advertising income in the December quarter fell short of estimates.
Alphabet also announced that its spending on data centers to support its AI aspirations would increase this year, underscoring the price of its heated fight with AI rival Microsoft.
While Google Cloud revenue growth marginally exceeded Wall Street expectations, driven by interest in AI, Microsoft Azure increased faster.
Microsoft outperformed analyst expectations for quarterly revenue as new AI features drew users to its cloud and Windows services. However, its shares slid 0.7% in extended trading after briefly reaching an intraday record high earlier on Tuesday.
Optimism over AI propelled Microsoft’s stock market worth above $3 trillion this month, surpassing Apple (AAPL.O).
Chipmaker Advanced Micro fell 6% after missing first-quarter revenue projections while forecasting strong sales of its AI chips.
Shares of Nvidia (NVDA.O), which gained 27% in January after more than tripling last year on AI optimism, gave back some of those gains in extended trading, closing down more than 2%.
Super Micro Computer, another company that profited from AI-related demand, fell more than 3%. Earlier on Tuesday, it had risen to a record high after reporting blockbuster quarterly results the day before.
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