Tech firms take fresh hit as earnings misses fan AI fears
· Technology · Economic Times, The Hindu
Tech stocks fell sharply on Friday after disappointing earnings reports from major US tech companies raised concerns about the AI investment boom. Amazon's quarterly profit and revenue fell short of expectations, while Intel's forecast missed estimates due to weak PC demand and supply-chain issues, causing its shares to drop 23 percent. Alphabet's revenue growth slowed, leading to a more than 12 percent plunge in after-hours trading, and the Nasdaq finished down more than one percent. The selloff extended to Asia, where South Korean chipmaker SK hynix dived almost nine percent and Samsung lost more than six percent.
Why it matters
Investors and Indian tech firms face reduced capital availability as global AI funding costs rise, potentially slowing domestic AI development and impacting companies reliant on global tech supply chains.
Read the original report — Economic Times
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