Investors doubt AI boom, tech stocks take hit, but Alphabet and Microsoft remain bullish.

From NASDAQ.: 2024-08-04 03:30:00

During this recent earnings season, many tech stocks have taken a hit as investors doubt the AI boom. Despite solid earnings by Alphabet and Microsoft, the sell-off intensifies with concerns about AI spending. Both companies are investing heavily in AI infrastructure, leading to a disconnect between revenue growth and capital expenditures. However, both Alphabet and Microsoft remain bullish on the long-term potential of AI products. Tech giants continue to race towards AGI, as companies like Micron Technology predict ongoing spending on AI infrastructure despite economic uncertainties. The pursuit of AGI, or artificial general intelligence, is seen as the “holy grail” of AI development. With cash-rich tech companies investing heavily in AI, the race towards AGI is likely to continue in the long term.



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