AI Stock Selloff: Investors Question Billions in Tech Spending

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 poured thousands of billions into AI infrastructure in a short period. Major firms like Meta, Alphabet, Amazon, and Intel have seen share declines following disappointing quarterly reports, while the Nasdaq composite fell nearly 3 percent on Friday, its worst day since June. Rising interest rates and shrinking traditional revenue streams add to investor concerns. Economist Maria Landeborn notes that unlike the dotcom bubble, today's major players are established and profitable, but they must ultimately prove they can charge customers for their data centers. Central banks signaling further rate hikes increase borrowing costs for highly leveraged companies.