AI stocks crash, companies lose $190 billion as Google, Microsoft, other tech companies reveal earnings

Posted under: AI technologies
Date: 2024-01-31
AI stocks crash, companies lose $190 billion as Google, Microsoft, other tech companies reveal earnings

On Tuesday, the AI sector faced a significant setback, witnessing a collective $190 billion decline in market value for key companies. Disappointing quarterly results from Microsoft, Alphabet, and Advanced Micro Devices fueled the sell-off, failing to meet investors' high expectations set during a recent AI-driven stock market surge. Alphabet, with a 5.6% drop, fell short on ad revenue for Q4, despite Google Cloud's revenue growth slightly exceeding targets. Microsoft, despite beating revenue estimates with new AI features, saw a 0.7% stock dip in extended trading. Advanced Micro Devices experienced a 6% drop due to a Q1 revenue forecast miss. Super Micro Computer, benefiting from AI demand, dropped over 3%, and NVIDIA, despite a January surge, saw a decline of over 2% in extended trade. This downturn highlights the challenges in meeting the elevated anticipation surrounding AI integration, impacting market values despite optimistic milestones.

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