Big US tech stocks swing as investors probe AI spend
The share prices of major US tech firms, including Meta, Alphabet, Microsoft, and Amazon, fluctuated as they reported their quarterly results and revealed plans to spend over $500 billion on AI this year. The companies' stocks reacted differently to their AI spending plans, with Alphabet's shares jumping 6% and Meta's slumping over 5%.
Major US tech firms reported their quarterly results, revealing plans to spend over $500 billion on AI this year. Meta's shares slumped over 5% after it announced increased spending on AI projects and infrastructure, while Alphabet's shares jumped 6% due to its positive performance and tangible business results from AI spending. Microsoft's stock fell nearly 2% despite beating revenue expectations, as its AI spending hit its free cash flow. Amazon's shares fell after it revealed lower-than-expected earnings for the next quarter. The companies' AI businesses are growing, with Microsoft's AI business hitting an annual run rate of $37 billion and Amazon's AI chip business reaching a $20 billion annual run rate.
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