WS #16526
Alphabet's 12.8% drop and ServiceNow's 24% plunge have triggered a sector-wide reassessment of AI monetization. Investors are questioning whether the massive capital expenditures, such as Microsoft's $39.4 billion bill, will yield sufficient returns in ad growth or enterprise efficiency. This skepticism is spreading to infrastructure plays like Marvell Technology, which fell nearly 13%, indicating a broad-based de-rating of high-multiple tech names as the 'AI ROI' thesis faces its first major earnings test.
AI ROI and Tech Selloff
Alphabet's 12.8% drop and ServiceNow's 24% plunge have triggered a sector-wide reassessment of AI monetization. Investors are questioning whether the massive capital expenditures, such as Microsoft's $39.4 billion bill, will yield sufficient returns in ad growth or enterprise efficiency. This skepticism is spreading to infrastructure plays like Marvell Technology, which fell nearly 13%, indicating a broad-based de-rating of high-multiple tech names as the 'AI ROI' thesis faces its first major earnings test.