WS #16350
The technology sector is facing a severe correction, led by Meta Platforms which dropped over 5% after disclosing a massive $825 billion AI capital expenditure plan that has turned its free cash flow negative. This revelation has sparked a broader rotation out of high-multiple tech stocks, with the SMH (Semiconductor) index plunging 5%. Institutional sentiment is turning wary, with prominent investors like Bill Ackman criticizing the leverage of 'neocloud' infrastructure plays compared to established hyperscalers.
Tech Selloff and AI Capex
The technology sector is facing a severe correction, led by Meta Platforms which dropped over 5% after disclosing a massive $825 billion AI capital expenditure plan that has turned its free cash flow negative. This revelation has sparked a broader rotation out of high-multiple tech stocks, with the SMH (Semiconductor) index plunging 5%. Institutional sentiment is turning wary, with prominent investors like Bill Ackman criticizing the leverage of 'neocloud' infrastructure plays compared to established hyperscalers.