WS #16577
A brutal sell-off in AI stocks has accelerated as quarterly results from Alphabet, Amazon, and Intel reveal mounting capital spending with delayed returns. Alphabet tumbled 12.6% in regular trading, shedding $500 billion in market value, while Intel plunged 27% on its worst day since 1974. Amazon also fell sharply as cash flows were weighed down by massive AI infrastructure bets. The market is aggressively repricing growth multiples downward, with Treasury yields falling to multi-week lows as capital flees to safety.
AI Capex Crisis and Tech Selloff
A brutal sell-off in AI stocks has accelerated as quarterly results from Alphabet, Amazon, and Intel reveal mounting capital spending with delayed returns. Alphabet tumbled 12.6% in regular trading, shedding $500 billion in market value, while Intel plunged 27% on its worst day since 1974. Amazon also fell sharply as cash flows were weighed down by massive AI infrastructure bets. The market is aggressively repricing growth multiples downward, with Treasury yields falling to multi-week lows as capital flees to safety.