The tech-heavy Nasdaq and S&P 500 were weighed by big tech. Google parent Alphabet beat quarterly earnings estimates after Tuesday’s close, but its overall sales and Google Cloud revenue both were weaker than analysts’ forecasts. However, it said it would spend more than Wall Street expected on AI. Alphabet shares were down 8%.
Meanwhile, chip company AMD said its data center revenue, a proxy for AI sales, fell short of expectations in the last three months of the year and it expected current quarter sales to drop 7% from that. AMD lost almost 9%. Apple also was under pressure, down 1.25%, after Bloomberg News reported that China’s antitrust regulator was preparing for a possible investigation of the iPhone maker.
