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Meta surges, Microsoft stumbles as Big Tech doubles down on AI spend
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Meta surges, Microsoft stumbles as Big Tech doubles down on AI spendMeta said capital expenditure would jump to between $115bn and $135bnThree members of the ‘Magnificent Seven’ Big Tech stocks – Meta, Microsoft and Tesla – gave investors an early read on the health of the AI boom after US markets closed on Wednesday.
Meanwhile, Microsoft slid roughly five per cent even after topping forecasts, as signs of slowing cloud growth unnerved investors already wary of ballooning AI spend.
The Big Tech also forecast first-quarter sales above Wall Street estimates.
Analysts at Jefferies dubbed that Meta had gone “full throttle” on AI, with investors seemingly comfortable, for now, that the ad machine can fund the arms race.
AI spend undoubtedly remains the strategic priority for Big Tech, but the market is starting to differentiate sharply between those turning spending into visible growth, and those who aren’t.