AI investments shake stock market as tech giants face investor scrutiny

The stock market has turned downward as several AI-linked companies have failed to meet expectations, with investors questioning whether massive investments will pay off. Tech giants have invested thousands of billions in a short time, raising concerns about profitability. Meta, Alphabet, Amazon, and Intel have all struggled on the stock market after recent quarterly reports disappointed investors. The Nasdaq composite index dropped nearly 3 percent on Friday, its worst trading day since June. Rising interest rates and declining revenues in traditional areas add pressure. Maria Landeborn at Danske Bank notes parallels to the dotcom bubble, but says today's major players are established and profitable. The key difference is that companies must ultimately be able to charge customers for their data centers.