Following the quarterly earnings reports of Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL), and Advanced Micro Devices Inc. (NASDAQ:AMD), the stock market value of AI-related companies plummeted by a staggering $190 billion.
What Happened: The stock market value of AI-related companies took a hit after the earnings reports of tech giants Microsoft, Alphabet, and AMD failed to meet investor expectations, Reuters reported on Wednesday. This selloff highlighted investors’ high expectations following a recent AI-driven stock market rally that had propelled these companies’ shares to record highs.
Alphabet’s stock fell by 5.6% after its fourth-quarter ad revenue failed to meet expectations. The company also announced a significant increase in spending on data centers to support its AI plans, underlining the costs of its fierce competition with AI rival Microsoft.
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