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Today: June 16, 2024
January 31, 2024
1 min read

AI firms go bust, $190B market cap down the drain

A new report shows that AI-related companies have lost $190 billion in market capitalization following disappointing quarterly results from tech giants Microsoft, Alphabet, and Advanced Micro Devices. The selloff reflects investors’ high expectations for the AI industry, which has seen a recent stock market rally and the promise of widespread adoption of AI technology across various sectors. Alphabet’s stock dropped 5.6 percent after missing expectations for December-quarter ad revenue. Microsoft, on the other hand, beat analyst estimates for quarterly revenue thanks to new AI features that attracted customers to its cloud and Windows services. However, its stock still fell 0.7 percent in extended trading. Chipmaker Advanced Micro also saw a 6 percent drop in its stock price as its first-quarter revenue forecast failed to meet expectations. Shares of Nvidia, which had experienced a surge on optimism about AI, also declined in extended trade. Super Micro Computer, another company benefiting from AI demand, saw its stock drop over 3 percent. Overall, the report highlights the sensitive nature of investor expectations and the potential risks for AI companies if they fail to deliver on those expectations.

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