Rising AI costs a stumbling block for big tech stock performance
<img width="250" height="141" src="https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Rising-AI-costs-a-stumbling-block-for-big-tech-stock-performance-iStock-1494104649-250×141.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Rising-AI-costs-a-stumbling-block-for-big-tech-stock-performance-iStock-1494104649-250×141.jpg 250w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Rising-AI-costs-a-stumbling-block-for-big-tech-stock-performance-iStock-1494104649-700×394.jpg 700w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Rising-AI-costs-a-stumbling-block-for-big-tech-stock-performance-iStock-1494104649-768×432.jpg 768w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Rising-AI-costs-a-stumbling-block-for-big-tech-stock-performance-iStock-1494104649-120×68.jpg 120w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Rising-AI-costs-a-stumbling-block-for-big-tech-stock-performance-iStock-1494104649-245×138.jpg 245w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Rising-AI-costs-a-stumbling-block-for-big-tech-stock-performance-iStock-1494104649-500×281.jpg 500w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Rising-AI-costs-a-stumbling-block-for-big-tech-stock-performance-iStock-1494104649.jpg 1365w" sizes="(max-width: 250px) 100vw, 250px" /><p><span data-contrast="auto">Alphabet stocks took a 7.35% knock after publishing its leaner-than-expected festive advertising sales figures on Tuesday, 30 January. The tech giant also indicated that more money will go into boosting its AI leverage by investing in upscaled servers, for example. </span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
<p><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span><span data-contrast="auto">Alphabet CEO Sundar Pichai tried to bolster investor confidence by saying:</span></p>
<blockquote><p><span data-contrast="auto">We are pleased with the ongoing strength in Search and the growing contribution from YouTube and Cloud. Each of these is already benefiting from our AI investments and innovation. As we enter the Gemini era, the best is yet to come.</span></p></blockquote>
<p><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span><span data-contrast="auto">On the same day, <a href="https://www.leaprate.com/news/microsofts-brief-brush-with-a-3tn-market-valuation/" target="_blank" rel="noopener">Microsoft</a> stocks hit a negative 0.2% bump. As with its Alphabet competitor, analysts attributed this to a focus on more AI spending in the company’s 2023 annual financial report.</span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
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<p><span data-contrast="auto">Microsoft Chairman and CEO Satya Nadella commented: </span><span data-contrast="none">“We will invest to accelerate our lead in AI by infusing this technology across every layer of the tech stack. And, finally, we will continue to drive operating leverage, aligning our cost structure with our revenue growth.”</span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
<p><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span><span data-contrast="auto">When AI hit the ground running, tech giants had investors on the edge of their seats with promises of significant sales boosts. In the wake of rising AI costs, investors are questioning the feasibility of these decisions. </span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
<p><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span><span data-contrast="auto">All eyes are now on Thursday, 1 February, when Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Amazon.com, Inc. (AMZN) will deliver their financials.</span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/forex/market-news/rising-ai-costs-a-stumbling-block-for-big-tech-stock-performance/">Rising AI costs a stumbling block for big tech stock performance</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>
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