February 1, 2024: AI-related corporations suffered a significant setback, losing $190 billion in market value late Tuesday. This happened afterwards Microsoft, Alphabet (Google’s parent company) and Advanced Micro Devices (AMD) announced their quarterly resultswhich didn’t meet investors’ high expectations.
These investors had driven the stocks of those corporations to recent highs within the hope that the usage of AI technology would bring great advantages.
The drop in stock prices followed earnings reports from these tech giants and showed investors expected more from corporations that benefited from the recent AI boom.
Alphabet saw its share price fall 5.6% because promoting revenue within the December quarter was below people’s expectations.
Alphabet also mentioned that it could spend more on data centers to support its AI projects, showing the high costs of competing with Microsoft in AI technology.
While Google Cloud made just a little more cash than expected because of interest in AI, Microsoft’s cloud service Azure grew even faster.
Microsoft’s overall revenue was higher than analysts forecast, helped by recent AI features that attracted more customers. However, the share price fell barely following the news.
The excitement around AI had increased Microsoft’s stock value exceeds $3 trillion earlier this month, making it more invaluable than Apple.
But after these reports, optimism faded somewhat. AMD shares also fell 6% as its revenue forecast for the subsequent quarter got here in lower than expected, although the corporate predicted strong sales for its AI processors.
Nvidia, whose stock rose 27% in January after tripling last yr on AI enthusiasm, experienced this Share price decline of greater than 2%.
Super Micro Computer, a server maker whose shares hit a record high after stellar quarterly results, also fell over 3%.
This major lack of market value for AI corporations shows that while there are great hopes for the longer term of AI, there could also be some bumps along the way in which.
Investors are watching closely to see whether these corporations can meet high expectations.
This article was originally published at www.greataiprompts.com
