Tech firms take fresh hit as earnings misses fan AI fears
Tech firms were again on the back foot Friday after another round of disappointing earnings from Wall Street titans fanned already deep concerns about the AI investment boom. "The concern isn't that AI demand has already slowed.
Tech firms faced a setback on Friday as earnings disappointments and worries about AI investments continued to weigh on Wall Street. Analysts expressed concerns that the current AI boom could lead to increased funding costs and credit risk, potentially slowing down the growth of "hyperscalers". Tech giants such as Amazon, Intel, and Alphabet saw their stocks plunge after missing earnings expectations and reporting weak demand for their products.
The Nasdaq, which tracks many of these tech companies, fell more than one percent. In Asia, chipmaker SK Hynix and rival Samsung also experienced significant drops in their stock prices. The selling extended to other markets in the region, with Seoul, Tokyo, and Taipei experiencing declines of more than five percent, two percent, and three percent respectively.
The concerns over AI investments and higher borrowing costs are pushing investors to question when these firms will see profits. Meanwhile, the recent hack of the world's largest crypto exchange, Binance, saw over $2.5 billion in funds frozen during an alleged $5.912 billion heist.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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