AI trade falters after disappointing tech earnings – Semafor

Intelligence for the New World Economy
Some investors are dialing back their expectations for US economic growth, as warning signs flashed red over the sustainability of the country’s breakneck AI buildout.
The tech-heavy Nasdaq slid into correction territory on Friday as investors unwound their AI bets.
Intel stock plunged 29%, the chipmaker’s biggest single-day selloff since the 1970s; concerns mounted over hyperscaler spending after disappointing Amazon and Google earnings; and S&P Global revised Meta’s outlook to “negative,” citing its high capex.
Earnings misses are generating “sober questions” about the AI investments powering the economy, a strategist told Bloomberg.
“You can’t find the growth slowdown in any of the economic data,” a portfolio manager told the Financial Times. “But… a reassessment of AI means a reassessment of growth expectations.”
Intelligence for the New World Economy
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