Equities Plunge in Tech-Led Sell-Off Amid Data Center Restriction Fears

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• Tech giants need legacy businesses to keep growing as they pour trillions into the AI buildout

  Big tech companies are pouring trillions of dollars into AI infrastructure but still rely on advertising, business software and e-commerce to fund it. This quarter, free cash flow was negative at Meta (-$2.12 billion), Amazon (-$42.4 billion) and Alphabet (-$9.07 billion), while Microsoft remained the only hyperscaler still positive, though its figure fell 27% to $18.63 billion. Amazon's online sales rose just 2%, below analysts' estimates, and it expects capital expenditures to reach $220 billion this year. Meta says capex could reach as high as $145 billion this year, and it plans to raise $95 billion in stock to support AI investment. Alphabet's core search business grew slower for a third straight quarter and missed projections, raising concerns that AI could displace its main revenue sources, though some investors argue its existing businesses remain strong enough to support the spending.

  CNBC·30/10, 11:00▲ NVDANVDAartificial intelligenceAI investment
• Calpers pulls back from big tech as AI jitters deepen neocloud sell-off

  California's pension fund Calpers, the world's fifth-largest with more than $600 billion in assets under management, cut the combined number of shares it directly held in the Magnificent Seven (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla) by 26% in the first half of 2026, according to FT calculations from regulatory filings. The fund is increasing its private equity exposure to diversify beyond a few market leaders, and deputy chief investment officer Anton Orlich told the FT that public equity valuations look expensive and tech giants could underperform other investments. The backdrop includes SpaceX raising $40 billion in debt to buy GPUs for AI computing, while Elon Musk warned that financing had largely dried up for companies without substantial revenue outside AI data centers and predicted consolidation among neocloud providers. In pre-market trading on Monday, CoreWeave (CRWV), Cipher Digital and IREN all fell.

  CoinDesk·26/10, 10:33▼ NVDA▼ QQQ▼ MSFT▼ AMZNartificial intelligenceinvestment truststech stocks
• Stocks slide as investors worry about data centre backlash

  Tech stocks fell sharply on Wall Street as investors worried about the future of AI data centre projects following the US midterm elections, erasing the previous day's post-election gains. Oil prices rebounded after plunging as much as 10 percent the day before on hopes of progress toward ending the US-Iran war, which also weighed on equities. The Nasdaq Composite fell more than five percent in late morning trading before pulling back, with chipmakers hit hardest: Nvidia dropped more than six percent, AMD 12 percent and Micron 11 percent. Many midterm winners have pledged to curb data centre buildouts, such as by imposing moratoriums on new projects, and analysts said investors are reacting to uncertainty over policy toward a sector favoured by the current president. European and Asian markets also closed lower, with Seoul shedding more than five percent, while the Bank of England raised its benchmark rate for the first time in more than three years as inflation remains elevated.

  Yahoo Finance·05/11, 17:07▼ NVDA▼ QQQNVDAdata centersQQQ
• Tech companies need more data centers . So why are nearly half of all planned projects delayed or canceled ?wgauradio.com·19/10, 21:30▼ NVDANVDAdata centerstech stocks
• Tech companies need more data centers. So why are nearly half of all planned projects delayed or canceled?magic1021.com·19/10, 21:30▼ NVDANVDAdata centerstech stocks
• Wall Street rethinks AI data center boom as Texas election raises new risksCoinDesk·04/11, 16:08▼ NVDA▼ META▼ AMZN▼ GOOGLdata centersAI investmentartificial intelligence

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  Yahoo Finance·05/11, 20:17▲ AMZNAMZNdata centersAI investment
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  CNBC·05/11, 20:17▼ NVDAdata centersmidterm electionsNVDA
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