WS #16609
The AI growth narrative is facing a brutal reality check as Alphabet dropped 13% on its worst day on record due to disappointing AI monetization, while Intel plunged 28% following a catastrophic earnings report and weak PC demand guidance through 2027. This selloff is spreading to the broader hardware ecosystem, with HP, Dell, and Micron all falling sharply as investors reassess the capital expenditure cycle. The market is now pricing in significant margin compression for tech giants as they struggle to justify massive AI infrastructure spending.
Tech Earnings Collapse
The AI growth narrative is facing a brutal reality check as Alphabet dropped 13% on its worst day on record due to disappointing AI monetization, while Intel plunged 28% following a catastrophic earnings report and weak PC demand guidance through 2027. This selloff is spreading to the broader hardware ecosystem, with HP, Dell, and Micron all falling sharply as investors reassess the capital expenditure cycle. The market is now pricing in significant margin compression for tech giants as they struggle to justify massive AI infrastructure spending.