Shares of Meta Platforms, Alphabet and Intel fell on Friday, deepening losses for investors that bought into their large stock offerings in recent months. The selloff followed weaker-than-expected earnings signals tied to the artificial intelligence infrastructure boom. Alphabet’s latest results showed search and other advertising revenue came in below expectations, while Intel disclosed supply chain issues involving data center components. Those developments added to doubts over whether the market can keep absorbing massive AI-related capital raising and whether heavy spending on AI will translate into durable stock-price gains over time. The decline in share prices also threatens to make future fundraising harder for companies seeking capital. It has also clouded the outlook for whether Anthropic, in a future IPO, could match or exceed the record fundraising scale achieved by SpaceX earlier this year.
Several large companies tied to the artificial intelligence infrastructure boom are facing a sharper market test after their shares fell, leaving investors that participated in recent large stock sales in a tougher position.
On Friday, shares of Intel, Alphabet and Meta Platforms moved lower. The declines came after recent earnings reports failed to meet expectations, pushing their stock prices below the levels paid by investors who bought into their offerings over the past few months.
Alphabet earnings triggered the latest drop
The latest leg of the selloff began on Wednesday, when Alphabet reported earnings showing search and other advertising revenue below expectations.
Intel then disclosed supply chain problems involving data center components, adding to market concern. Together, the updates from the two companies highlighted investor doubts about whether the current pace of heavy AI spending can be sustained.
AI-related fundraising faces a tougher backdrop
The market was already struggling to absorb large AI-related share issuance while weighing whether those sizable investments can turn into long-term gains in stock prices.
With shares falling, raising the capital companies need may become more difficult. The move has also made the outlook less clear for whether Anthropic could reach or surpass the fundraising scale of SpaceX’s record listing earlier this year in a future IPO.
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