From Nasdaq:

$190 billion in stock market value was lost by AI-related companies late on Tuesday after Microsoft, Alphabet, and Advanced Micro Devices delivered quarterly results that failed to impress investors. The selloff highlighted investors’ elevated expectations following a recent AI-fueled stock market rally. Alphabet dropped 5.6% after missing expectations for its December-quarter ad revenue and announced increased spending on data centers to support its AI plans.

Shares of chipmaker Advanced Micro tumbled 6% after its forecast for first-quarter revenue missed estimates, despite projecting strong sales for its AI processors. Nvidia, whose shares have surged 27% in January on AI optimism, also gave back some gains in extended trade, down over 2%. Server maker Super Micro Computer, which has benefited from AI-related demand, dropped over 3%.

Microsoft beat analyst estimates for quarterly revenue, with its stock briefly hitting an intra-day record high earlier on Tuesday, but falling 0.7% after the bell. Optimism about AI pushed Microsoft’s stock market value above $3 trillion this month, surpassing Apple. AI-related interest also boosted Google Cloud revenue growth slightly above Wall Street targets, as well as attracting customers to Microsoft’s cloud and Windows services.



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