WS #16602
Intel's 30% drop on an earnings warning has triggered a broad selloff in the semiconductor sector, reflecting fears that massive AI capex is not yielding immediate sales returns. Amazon's stock is recovering from post-earnings lows, indicating that selective execution is still rewarded, but the broader market is punishing unprofitable growth. This shift is pressuring high-multiple tech valuations and redirecting capital toward profitable, cash-generative firms.
Tech Earnings & AI ROI Skepticism
Intel's 30% drop on an earnings warning has triggered a broad selloff in the semiconductor sector, reflecting fears that massive AI capex is not yielding immediate sales returns. Amazon's stock is recovering from post-earnings lows, indicating that selective execution is still rewarded, but the broader market is punishing unprofitable growth. This shift is pressuring high-multiple tech valuations and redirecting capital toward profitable, cash-generative firms.