WS #16373
Meta's shares dropped more than 8%, wiping out $145 billion in value, after the company raised its capital expenditure outlook to $135-$145 billion. This move, coupled with BofA's report on growing investor reluctance to fund AI infrastructure, suggests a potential turning point in the tech rally. Investors are increasingly wary of the massive, sustained capital requirements needed for AI development, leading to a rotation out of high-spending tech giants.
Tech AI Capex Fatigue
Meta's shares dropped more than 8%, wiping out $145 billion in value, after the company raised its capital expenditure outlook to $135-$145 billion. This move, coupled with BofA's report on growing investor reluctance to fund AI infrastructure, suggests a potential turning point in the tech rally. Investors are increasingly wary of the massive, sustained capital requirements needed for AI development, leading to a rotation out of high-spending tech giants.