Tech giants like Microsoft and Meta are accelerating AI data center spending, with massive capital pouring into these projects.
Microsoft and Meta reported on Wednesday that AI investments are spiking their expenses, while Alphabet announced similar trends.
Amazon, due to report earnings shortly, is expected to mirror these projections, foreseeing further pressure on profit margins.
Wall Street is getting wary of the financial strain, as each company’s stock took a hit this week despite strong quarterly numbers.
Shares of Meta fell over 3%, and Microsoft saw a 6% drop, underscoring Wall Street’s jitters.
“It’s expensive to keep up with AI technology demands,” says GlobalData’s Beatriz Valle, emphasising a competitive race in AI capacity.
The high-stakes investments are starting to test investor patience in Big Tech’s ambitious AI journey.
