Quarterly earnings disappoint as Alphabet shares drop 5.6%, revealing concerns about ad revenue and increased spending on AI-related infrastructure.
Despite a 15% YoY increase, Google’s December ad revenue of $9.2 billion falls short, overshadowed by rising expenses for data centers supporting AI initiatives. Competition with Microsoft intensifies, impacting Google’s overall Q4 revenue of $86 billion.
Microsoft Surpasses $3 Trillion Mark:
Microsoft’s AI-driven features contribute to beating analyst estimates with quarterly revenue of $62 billion, propelling the company’s market capitalization beyond $3 trillion. However, shares dip 0.7%, emphasizing the volatility in AI-focused sectors.
Semiconductor Sector Setbacks:
Chipmaker Advanced Micro faces a 6% decline in shares due to a Q1 revenue forecast missing estimates, adds NIX Solutions. Nvidia experiences a pullback, losing over 2% in extended trading after a significant January surge. Super Micro Computer, catering to AI demand, also sees a 3% drop in shares.