Wall Street tech rout deepens on doubts over AI spending

Shares in US tech giants were pummeled on Friday, capping a week of earnings results that raised questions on Wall Street about whether the AI spending bonanza was sustainable.

Microsoft, Alphabet and Amazon all reported quarterly results this week, and each signaled it would keep pouring money into data centers and chips even as investors grow impatient for returns.

Along with Meta that reported last week, together the four companies are on track to spend more than $700 billion on capital investment this year — roughly the size of Argentina’s or Belgium’s entire economy — much of it on AI infrastructure, according to analyst estimates.