AI Capex Clouds The Tech Horizon, Even As Meta And Tesla Shine

2026-02-02 14:05:00 ET

Mixed Signals in the Mag 7: AI Spending Rattles Big Tech

Headline whiplash returned to US equity markets last week, but this time the drama wasn't geopolitical. On Thursday, the tech-heavy Nasdaq fell 1.3% as the market digested mixed results from some Magnificent Seven earnings reports. The primary weight came from Microsoft ( MSFT ), which saw its shares plunge nearly 12% in its worst single-day decline in six years. While the tech behemoth handily beat expectations on the top and bottom lines, investors decided to home in on capital expenditures, which totaled $37.5B for the quarter, proving that the cost of admission in the AI era is a steep one. ¹ ...

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