Tech Giants’ AI Spending Spree Divides Wall Street as Payoff Timeline Remains Uncertain
Alphabet's stock surged nearly 7% in after-hours trading as the Google parent announced an $8 billion increase in 2025 spending plans, reaching $93 billion. The tech behemoth also reported its first-ever $100 billion quarterly revenue milestone. Meanwhile, Meta's shares tumbled 9% in a potential $160 billion valuation wipeout after signaling AI expenditures could exceed $100 billion next year.
"Investors are watching the AI gold rush with both fascination and trepidation," said Dec Mullarkey of SLC Management, which oversees $300 billion in assets. The divergent market reactions underscore Wall Street's struggle to price technological bets that may take years to mature. Microsoft shares fell 4% despite beating earnings estimates and its Azure cloud business posting 39% revenue growth, demonstrating how even strong fundamentals can't quell AI-related skepticism.
