US tech stocks face losses as earnings revive concern over AI spending
Amazon, Alphabet, Microsoft and Meta together aim to spend more than $700 billion on AI infrastructure this year, according to The Motley Fool.
US tech stocks are set for losses as company earnings renew concern about how much is being spent on artificial intelligence, the Financial Times reports.
The spending is large. Amazon, Alphabet, Microsoft and Meta Platforms together plan more than $700 billion on AI infrastructure this year, The Motley Fool wrote, adding that the message from the companies is that it will continue beyond 2026. Startup Fortune put Alphabet's 2026 capital spending guidance at $205 billion and Amazon's at about $220 billion, after chief executive Andy Jassy raised it by $20 billion.
The doubt did not begin with earnings. Pension funds have pulled back from US equities over AI risk, and OpenAI's revenue has come in below the run rate it signalled. Both raised the question of whether money committed to AI buildouts is being matched by returns. Reported results from the companies doing the spending now give that question a concrete trigger. The large technology names most exposed to that spending face the pressure.
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