Amazon’s stock price has plummeted after revealing a $200 billion spending projection for upgrading AI-driven cloud data centers, $50 billion higher than Wall Street expected. The resulting market cap loss of $470 billion triggered a nine-day losing streak, the longest since 2006.

Investors are wary as Amazon’s stock continues to slide, with RSI at an extreme low of 23. Amazon’s massive capex investment in AI mirrors other tech giants like Google and Microsoft spending $625 billion on data center upgrades. Wall Street analysts remain bullish on Amazon despite lowered price targets.

Gartner predicts AI spending will reach $2.5 trillion in 2026, with Amazon’s aggressive investment seen as necessary to stay competitive. Bank of America lowered Amazon’s price target to $275 due to higher capex impacting margins, but maintains a buy rating for the stock.

Investors may see a buying opportunity as Amazon’s RSI hits extreme lows not seen in years, signaling a potential reversal. While stocks can fall further than expected, analysts are optimistic about Amazon’s long-term prospects in the AI industry.

Read more at Yahoo Finance: Amazon stock fires bullish technical signal after $470B tumble