Meta, Microsoft Stock Sell-Offs Show Investor Exhaustion Around AI Spending
Mega-cap tech firms keep spending loads of cash on AI — and investors are starting to rebel.
That was evident after Meta and Microsoft — two of the largest companies at the center of the AI revolution — saw their stock prices drop on Wednesday, after earnings.
The catalyst for the losses was newly announced plans from both companies to spend even more on AI in the next year, despite colossal amounts that have already been poured into the AI race.
Meta said it could spend $70 billion to $72 billion on AI capex in 2025, up from its previous guidance of $66 billion to $72 billion. CFO Susan Li said the company would spend even more on AI in 2026, driven largely by infrastructure costs.
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