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Big Tech Faces Investor Skepticism Over AI Spending

Earnings reports reveal mixed results and growing concerns about the profitability of AI investments.

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Overview

  • Meta's AI investments show early gains, easing investor worries despite high spending.
  • Microsoft and Amazon struggle with cloud growth, leading to stock declines.
  • Apple's AI strategy and upcoming product launches keep investors cautiously optimistic.
  • Intel and AMD's chip performance highlights competitive pressures in the AI sector.
  • Analysts warn of a potential AI bubble as companies continue massive spending without clear returns.