WS #16581
Intel's 27% plunge on a weak forecast and Alphabet's 12.6% drop on AI capex concerns have triggered a significant rotation out of mega-cap growth stocks. The market is questioning the near-term ROI of massive AI infrastructure investments, leading to a divergence where the QQQ underperforms while small caps and value sectors rally. This marks an escalation in the narrative that AI spending may be outpacing immediate revenue generation.
Tech Selloff and AI Capex Reckoning
Intel's 27% plunge on a weak forecast and Alphabet's 12.6% drop on AI capex concerns have triggered a significant rotation out of mega-cap growth stocks. The market is questioning the near-term ROI of massive AI infrastructure investments, leading to a divergence where the QQQ underperforms while small caps and value sectors rally. This marks an escalation in the narrative that AI spending may be outpacing immediate revenue generation.