After Alphabet And Microsoft Report, AI Companies Lose $190 Billion In Market Value

After Microsoft (MSFT.O), Alphabet (GOOGL.O), and Advanced Micro Devices (AMD.O) delivered quarterly results on Tuesday, the AI- companies lost 190 Dollar billion in stock market value. The quarterly result could not impress investors who had sent their stocks soaring.

After Google-parent Alphabet’s December-quarter ad revenue failed to generate an expected result, it dropped 5.6% market value. Alphabet was spending on data centres to support its AI ventures and said that it would raise this year, posing tight competition against Microsoft, its AI rival.

The selloff following the major companies’ reports after the bell emphasised investors” heightened expectations after the AI-powered stock market rally that propelled their shares to record highs with the promise of incorporating the technology across the corporate landscape. However, with the interest in AI, Google Cloud revenue slightly topped the Wall Street targets while Microsoft’s Azure grew faster.

Microsoft outperformed analyst expectations for quarterly revenue because of the success of its new AI features, attracting customers to its cloud and Windows services. But the company”s stock fell by 0.7% in extended trade after briefly hitting an intraday record high earlier on Tuesday.

Though the company had good expectations about AI as it propelled Microsoft”s market value above $3 trillion, the company suffered a decline. Chipmaker Advanced Micro on the other hand suffered a 6% drop after its forecast for first-quarter revenue missed estimates and despite being projected strong sales for its AI processors.

Shares of Nvidia (NVDA.O) too experienced down over 2% though it had surged 27% in January after more than tripling last year on AI. Apart from this, server maker Super Micro Computer, saw a decline of over 3 % in its stock, despite the company had benefited from the AI demand.