AI-related companies lost $190 billion in stock market value late on Tuesday after Microsoft, Alphabet and Advanced Micro Devices delivered quarterly results that did not impress investors who had sent their stocks soaring.
The selloff following the tech giants’ reports after the bell underscored investors’ elevated expectations following an AI-fueled stock market rally in recent months that propelled their shares to record highs with the promise of incorporating the technology across the company landscape.
Alphabet dropped 5.6% after the Google-parent’s December-quarter ad revenue missed expectations.
Alphabet also said its spending on data centers to support its AI plans would jump this 12 months, highlighting the prices of its fierce competition against AI rival Microsoft.
While Google Cloud revenue growth barely topped Wall Street targets, boosted by interest in AI, Microsoft’s Azure grew faster.
Microsoft beat analyst estimates for quarterly revenue as latest AI features helped attract customers to its cloud and Windows services. Nevertheless, its stock fell 0.7% in prolonged trade after briefly hitting an intra-day record high earlier on Tuesday.
![AI companies lost $190 billion in stock market value on Tuesday.](https://nypost.com/wp-content/uploads/sites/2/2024/01/chatgpt-logo-ai-artificial-intelligence-75628858_f322eb.jpg?w=1024)
Optimism about AI pushed Microsoft’s stock market value above $3 trillion this month, eclipsing Apple.
Chipmaker Advanced Micro tumbled 6% after its forecast for first-quarter revenue missed estimates, at the same time as it projected strong sales for its AI processors.
Shares of Nvidia which have surged 27% in January after greater than tripling last 12 months on AI optimism, also gave back a few of those gain in prolonged trade, last down over 2%.
Server maker Super Micro Computer, one other company that has benefited from AI-related demand, dropped over 3%.
Earlier on Tuesday, it had climbed to a record high after delivering blowout quarterly results the day before.