Quarterly reports from tech giants disappointed investors, sending shares of artificial intelligence companies down.
As Reuters reports, II companies lost a total of about $190 billion in market capitalization.
Alphabet shares fell 5.6% as Google’s December ad haul fell short of expectations (although quarterly ad revenue reached $9.2 billion, up 15% from last year). The company also said its data center spending to support its AI plans would rise this year, underscoring the cost of stiff competition from Microsoft. In total, Google’s revenue last quarter reached $86 billion.
Despite Google Cloud’s revenue growth slightly beating Wall Street targets, driven by interest in artificial intelligence, Microsoft’s Azure grew faster. Overall, Microsoft beat analysts’ estimates for quarterly revenue ($62 billion) as new artificial intelligence features helped attract customers to its cloud and Windows services. However, its shares also fell by 0.7%.
This month, Microsoft’s interest in artificial intelligence helped the company surpass the $3 trillion mark in market capitalization for the first time, eclipsing Apple.
Shares of chipmaker Advanced Micro fell 6% after its first-quarter sales forecast missed estimates.
Shares of Nvidia, which soared 27% in January after more than tripling last year’s gains thanks to AI, also gave back some of those gains in extended trading, last falling more than 2%.
Shares of server components maker Super Micro Computer, which also benefited from demand for artificial intelligence, fell more than 3%.
