Investors flinch at Big Tech’s $740 billion spending
Investors are getting nervous about AI infrastructure spending just as the Big Tech companies double down. Over the past two weeks, Alphabet, Amazon, Meta, and Microsoft have outlined plans to spend more than $740 billion on capital expenditures this year, which Wall Street is reading as AI infrastructure spending, including data centers and chips. Only Microsoft escaped the free cash flow squeeze.
Key Results at a Glance
Market reaction: The Nasdaq fell 2.9% on Friday. Nvidia dropped 4%, Broadcom more than 5%, and Qualcomm 11%.
Alphabet: Its stock plummeted 12% on Thursday, its worst day...