Investors are questioning Big Tech’s AI spending 👛 The AI euphoria… — Tidbits w Dom — TG.ME

✈️ Investors are questioning Big Tech’s AI spending 👛 The AI euphoria that pushed markets to all-time highs just a month ago is fading. Tech was the worst-performing S&P 500 sector last week. The Nasdaq 100 fell 4.1%, while the Philadelphia Semiconductor Index dropped 10%, its worst week since April 2025. SpaceX also fell below its IPO price after losing 25% over two weeks and wiping out US$1 trillion from its peak market cap. Investors are becoming more uncomfortable with the scale of AI capital expenditure. Alphabet alone is projected to spend US$187 billion this year. The four biggest hyperscalers combined are forecasting up to US$725 billion in capex. The next two weeks of Big Tech earnings will be the key test, with Alphabet, Tesla, Microsoft, Meta, Apple and Amazon reporting in quick succession. Analysts will be watching cloud margins, AI revenue per dollar of compute, and whether capex growth is slowing or accelerating.