News · Yahoo Finance

Cracks are emerging in the AI spending boom

Investors are growing nervous about AI infrastructure spending, even as Alphabet, Amazon, Meta and Microsoft plan to spend more than $740 billion on capital expenditures this year. The Nasdaq fell 2.9% on Friday, with chip stocks hit hard and Qualcomm down 11%. Alphabet plunged 12% on Thursday, wiping out $500 billion in market value, and reported negative free cash flow of $9.1 billion in the third quarter while expecting to spend up to $205 billion this year, as its Search advertising growth slowed to 12% amid the rollout of AI Mode. Amazon posted negative free cash flow of $42.4 billion over the past 12 months despite 39% AWS growth, and Meta reported negative free cash flow of $2.1 billion in the third quarter even as ad revenue rose 26%. Negative cash flow, mounting debt and doubts about whether these investments will pay off are weighing on market sentiment.

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AI investmentsemiconductorsGOOGLMSFTMETAAMZN

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Related tickers and likely impact

NVDA

▼ Likely negative

Nvidia

Relevance: high

MarketUS stocks
SectorInformation Technology
IndustrySemiconductors
Market cap$5.1T
Close on 10/30/2026204.81
Change that session-4.14%
NVDA price, forecasts and signals →

MSFT

▼ Likely negative

Microsoft

Relevance: high

MarketUS stocks
SectorInformation Technology
IndustrySystems Software
Market cap$3.9T
Close on 10/30/2026521.90
Change that session-1.55%
MSFT price, forecasts and signals →

AMZN

▼ Likely negative

Amazon

Relevance: medium

MarketUS stocks
SectorConsumer Discretionary
IndustryBroadline Retail
Market cap$2.7T
Close on 10/30/2026240.47
Change that session-1.36%
AMZN price, forecasts and signals →

GOOGL

▼ Likely negative

Alphabet Inc. (Class A)

Relevance: medium

MarketUS stocks
SectorCommunication Services
IndustryInteractive Media & Services
Market cap$4.0T
Close on 10/30/2026279.76
Change that session-1.43%
GOOGL price, forecasts and signals →

META

▼ Likely negative

Meta Platforms

Relevance: medium

MarketUS stocks
SectorCommunication Services
IndustryInteractive Media & Services
Market cap$1.7T
Close on 10/30/2026614.98
Change that session-1.53%
META price, forecasts and signals →

QQQ

▼ Likely negative

Invesco QQQ Trust

Relevance: medium

MarketUS stocks
SectorETF
Close on 10/30/2026690.49
Change that session-3.47%
QQQ price, forecasts and signals →

Impact is scored by AI from the headline and may be wrong. It is not investment advice.

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