AI-related companies lost USD 190 Billion in stock market value late Tuesday after Microsoft, Alphabet, and Advanced Micro Devices Delivered quarterly results that failed to Impress investors who had sent their Stocks soaring.
The sell-off 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 on the promise of Technology being Integrated across the corporate Landscape.
Alphabet dropped 5.6% after Google's parent company's ad revenue in the December quarter fell below expectations.
Alphabet also said its spending on data centers to support its AI plans will increase this year, highlighting the costs of its fierce competition against AI rival Microsoft.
While Google Cloud's revenue growth slightly exceeded Wall Street targets, driven by interest in artificial intelligence, Microsoft's Azure service grew faster.
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Microsoft beat analysts' estimates for quarterly revenue as new artificial intelligence features helped lure customers to its Windows and cloud services. However, its shares fell 0.7% in extended trade after briefly hitting an intra-day record high earlier on Tuesday.
Optimism about artificial Intelligence has Boosted Microsoft's market value to more than USD 3 Trillion this Month, eclipsing Apple.
Chipmaker Advanced Micro tumbled 6% after first-quarter revenue forecasts beat estimates, even as it forecast strong sales for its artificial intelligence processors.
Nvidia shares, which surged 27% in January after more than tripling last year thanks to AI optimism, also gave up some of those gains in extended trading, falling more than 2%.
Server maker Super Micro Computer, another Company that has benefited from AI-Related demand, fell more than 3%. Earlier on Tuesday, it rose to a Record high after posting stunning Quarterly results the day before.
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