WS #16556
Alphabet's 12.8% crash and Intel's 22% plunge have reignited doubts about the return on investment for massive AI infrastructure spending. The market is reacting negatively to weak cloud revenue and poor PC market guidance, suggesting that the AI narrative is facing a reality check on profitability and near-term demand. This has dragged the Nasdaq lower and pressured the broader technology sector, as investors reassess the sustainability of current capex levels.
AI Capex Squeeze and Tech Selloff
Alphabet's 12.8% crash and Intel's 22% plunge have reignited doubts about the return on investment for massive AI infrastructure spending. The market is reacting negatively to weak cloud revenue and poor PC market guidance, suggesting that the AI narrative is facing a reality check on profitability and near-term demand. This has dragged the Nasdaq lower and pressured the broader technology sector, as investors reassess the sustainability of current capex levels.