Wall Street indexes slip as Alphabet, AMD forecasts fan AI payoff concerns

Wall Street’s main indexes fell on Wednesday, as disappointing forecasts from Alphabet and AMD fueled investor doubts around the payoff from hefty investments into artificial intelligence.

Google-parent Alphabet dropped 8.3 per cent after posting downbeat cloud revenue growth and earmarking a higher-than-expected $75 billion for its AI buildout this year.

“While some investors may have hoped that Silicon Valley would exercise caution in the wake of China’s AI innovations, the opposite is occurring,” Jochen Stanzl, chief market analyst at CMC Markets, said in a mailed statement.