WS #16579
Intel plunged 27% on an earnings miss and weak outlook, triggering a sector-wide selloff that dragged Alphabet down 12.6% and Amazon 7%. The market is aggressively discounting the AI boom as the capital expenditure required by Big Tech fails to justify near-term margin erosion, resulting in a $900 billion loss in combined market cap. This represents a critical inflection point where the 'AI is real' narrative is being challenged by 'AI is too expensive' reality.
AI Capex Selloff
Intel plunged 27% on an earnings miss and weak outlook, triggering a sector-wide selloff that dragged Alphabet down 12.6% and Amazon 7%. The market is aggressively discounting the AI boom as the capital expenditure required by Big Tech fails to justify near-term margin erosion, resulting in a $900 billion loss in combined market cap. This represents a critical inflection point where the 'AI is real' narrative is being challenged by 'AI is too expensive' reality.