AI Stocks Take a Hit: Microsoft and Meta's AI Spending Shocks the Market

Thursday was a rough day for tech investors as stocks related to AI took a nosedive. The culprits? Microsoft and Meta, two giants in the tech world, both signaled that they'll need to spend big on AI in the future. This news didn't sit well with investors, who had been hoping for more growth. Microsoft admitted it can't keep up with the demand for AI data centers. Their CEO, Satya Nadella, said they're struggling to build these centers fast enough. This slowdown spooked investors, sending Microsoft's stock down over 5%. Meta, on the other hand, hinted that their AI spending will only increase. CEO Mark Zuckerberg said they'll need to invest heavily in AI infrastructure. This news also sent Meta's stock tumbling. The ripples of this news spread to other AI-related companies. Nvidia, a big player in AI semiconductors, saw its stock drop by 4. 5%. Other companies like Advanced Micro Devices, Micron Technology, and Broadcom also felt the sting. One company, Super Micro Computer, even faced a potential delisting from the Nasdaq due to an ongoing audit dispute. It's a tough reminder that even the biggest tech companies can't always keep up with the rapid pace of AI development. Investors are now left wondering how these companies will balance their AI spending with their growth prospects.