A crucial earnings season for the AI trade is faltering, causing global chipmakers to fall. Amazon.com Inc.'s massive capital spending and Intel Corp.'s weak PC processor sales forecast have raised concerns about AI's profitability and financing costs. The Bloomberg gauge of Asian chipmakers dropped 1.8% on Friday, with South Korea's SK Hynix Inc. and Japan's Advantest Corp. falling over 6% each.
Anna Wu, investment strategist and founder of Floodlines Research, noted the season has punished AI players amid inflation fears. She warned that rising funding costs and credit risks could compel hyperscalers to slow their AI infrastructure build-out.
The situation reflects broader market skepticism about the sustainability of AI investments and their return on capital, casting a shadow over the sector's future growth.
Amazon.com Inc.
Intel Corp.
SK Hynix Inc.
Advantest Corp.
1.8%
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Source: Bloomberg Markets · Summarized by HeadlinesBriefing