By Lewis Krauskopf
NEW YORK, Nov 2 (Reuters) – A steep decline in the prices of US AI and technology stocks is testing investors’ enthusiasm to shift into other equity areas, a rotation that has propped up broader indexes in recent weeks.
Disappointing results from Alphabet, Amazon and Intel dealt the latest blow to the AI trade. Investors worry about the hefty financing needed to fund massive investment spending. They are also starting to question whether returns will be robust enough to justify that spending.
The broader market in October held up far better than tech- and AI-exposed equities did, but it may not be able to endure a more severe pullback in the massive AI trade. The tech…







