Big Tech is on a spending spree, forecast to drop a staggering $650 billion on artificial intelligence (AI) in 2026 alone—and that’s just for Alphabet, Meta, Microsoft, and Amazon. The companies are ramping up their investment in an increasingly competitive, high-stakes arms race, pouring hundreds of billions into massive data centers and semiconductors, in hopes of establishing a long-term strategic advantage in their quest to dominate the future of technology. Most Read from Fast Company With all four ...

Core Insights - Big Tech companies are significantly increasing their capital expenditures (capex) focused on AI infrastructure, with total spending projected to exceed $630 billion [2][3][6] Group 1: Capital Expenditure Projections - Alphabet plans to double its capex to nearly $185 billion by 2026 [2] - Amazon aims to allocate $200 billion to capex, surpassing Wall Street estimates [2] - Meta's full-year capex is expected to rise to as much as $135 billion [2] Group 2: Focus on AI Infrastructure - The majority of Big Tech's spending is concentrated on scaling AI compute rather than diversifying into various strategic investments [3] - Current AI infrastructure spending is comparable to the GDP of countries like Sweden and Israel, highlighting the scale of investment [4] Group 3: Historical Context and Demand - The current AI build-out is unprecedented in scale, with companies like Amazon, Meta, and Microsoft experiencing record demand backlogs [6] - Microsoft's backlog has doubled to $625 million, driven by demand from OpenAI [6] Group 4: Infrastructure Bottlenecks - The AI industry's bottleneck has shifted from chip shortages to a lack of physical infrastructure, indicating a need for more data centers [7] - Analysts suggest that future data center build-outs could occur in local areas, transforming existing structures into data centers [5]

Gather round while we look at the reality of markets. They correct, and sometimes, corrections are brutal. Feb. 5 proved to be a really brutal day, especially for the Magnificent 7 stocks. The Mag 7 group, which includes Apple, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla, has mostly struggled so far this year. That's because investors worry that the group is spending billions on data labs that may take years to become profitable. And there's no sign the contagion is easing. Among th ...

Market Overview - Bitcoin has dropped to $60,000 from a record high of $124,000, indicating a downward trend in market froth [1] - Share markets, including the ASX 200 index, have seen significant declines, with a 2% drop on Friday [2] - A local market wipeout of nearly $65 billion occurred, marking the largest fall since April of the previous year, with all sectors closing lower [3] Sector Performance - The ASX technology sector fell by 12.6% for the week, driven by concerns over AI investments and their potential returns [6] - Major tech companies like Amazon saw an 11% drop in shares due to high capital expenditure plans, impacting technology stocks in Australia [7] - Real estate stocks weakened, with Goodman Group falling 6.1% and REA Group down 7.8% after disappointing profit results [11] Commodity and Mining Sector - Gold and silver prices have weakened, with silver experiencing a 2% increase after an 18% fall in the previous session [8] - Major mining companies like BHP, South32, and Newmont saw declines in their share prices, with BHP down 3.1% [9] - Rio Tinto shares remained flat after ending merger talks with Glencore [10] Upcoming Economic Indicators - The focus will shift to household spending data expected to show some weakening, while new home loan data is anticipated to increase by around 6% [14] - US jobs figures are expected to show an addition of around 50,000 jobs, with the unemployment rate steady at 4.4% [15]

Apple's stock (NASDAQ:AAPL) has shown remarkable resilience, maintaining its position despite a $1.2 trillion loss in the tech industry.The company's cautious approach to spending and focus on steady growth has been beneficial, especially in comparison to other tech giants' heavy investments in AI.Apple's financial discipline has enabled it to maintain a healthy balance sheet, providing a buffer against market volatility and ensuring long-term value for shareholders.During a tumultuous period in the tech in ...

Market Overview - Asian stock markets are mostly trading lower, influenced by negative cues from Wall Street, particularly in technology stocks amid valuation concerns and the impact of artificial intelligence [1][15] - The Australian stock market is sharply lower, with the S&P/ASX 200 falling below the 8,750 level, driven by weakness across all segments, especially mining stocks [2][3] Australian Market Details - The S&P/ASX 200 Index is down 159.40 points or 1.79 percent to 8,729.80, after reaching a low of 8,714.10 [3] - Major miners are experiencing declines: Rio Tinto down 0.4 percent, BHP Group down almost 3 percent, Fortescue down almost 1 percent, and Mineral Resources down more than 4 percent [3] - Oil stocks are also weak, with Santos down more than 1 percent, Woodside Energy down almost 2 percent, and Beach Energy down almost 4 percent [4] - Among tech stocks, Afterpay-owner Block is down almost 7 percent, WiseTech Global down almost 5 percent, and Appen down almost 9 percent [4] Banking and Gold Mining Sector - In the banking sector, ANZ Banking and National Australia Bank are down more than 1 percent each, while Commonwealth Bank and Westpac are down 0.1 percent each [5] - Gold miners are facing significant losses, with Evolution Mining and Northern Star Resources down more than 2 percent each, and Newmont and Genesis Minerals down more than 6 percent each [5] Company-Specific News - REA Group shares are down more than 10 percent after first-half financial results missed analysts' expectations [6] - Web Travel Group shares plummeted almost 29 percent following an audit announcement by the Spanish Tax Agency [6] Japanese Market Overview - The Japanese market is showing a mixed performance, with the Nikkei 225 Index up 255.48 points or 0.47 percent to 54,073.52 after earlier lows [7][8] - SoftBank Group is gaining almost 2 percent, while Fast Retailing is down almost 1 percent [8] - In the banking sector, Sumitomo Mitsui Financial is up almost 2 percent, and Mizuho Financial is gaining more than 2 percent [9] Economic Indicators - Japan's household spending decreased by 2.9 percent month-on-month in December, missing forecasts [12][13]

Market Overview - The ASX is expected to open down by -1.2%, influenced by declines in Wall Street [1] - The Nasdaq fell -1.6% amid a tech selloff, while the S&P and Dow both dropped -1.2% [2] - Global markets also experienced losses, with London down -0.9% and the Stoxx index down -1% [3] Commodities - Gold prices remained steady but slightly down, while silver saw a significant drop of -12.5%, trading at US$73.83/oz [4] - Iron Ore prices decreased by -1.9%, selling at $100.65 per tonne [7] - Brent Crude oil fell by -3%, now priced at $67.31 per barrel [7] Company News - Rio Tinto has abandoned merger talks with Glencore, which would have created the world's largest mining company; Rio Tinto's stock fell -2.6% in London, while Glencore's dropped -11% [5] - Advance Metals reported successful historic sampling tests at its Yoquivo silver-gold project, potentially leading to a resource upgrade next month [6] - MGX Resources completed a half-split acquisition of the Central Tanami gold project in the Northern Territory [6] - REA Group and Syntara are among the companies reporting today [6]

Core Viewpoint - US stocks are experiencing a downturn following a significant selloff in the technology sector, impacting popular trades on Wall Street [1] Market Performance - The S&P 500 index decreased by approximately 0.46% [1] - The Nasdaq Composite index fell by about 0.6%, marking a continuation of a sharp two-day decline in high-growth stocks [1]

Market Overview - U.S. stock futures showed volatility with the Dow Jones declining after a rotation out of tech stocks, while major benchmark indices had mixed futures [1] - The Nasdaq Composite dropped approximately 351 points as investors shifted focus, with corporate results becoming the primary market driver [1] Economic Indicators - Market participants are analyzing the latest weekly jobless claims report for insights into the U.S. labor market's durability [2] - The 10-year Treasury bond yielded 4.27%, while the two-year bond was at 3.55%, indicating market expectations for interest rates [2] - The CME Group's FedWatch tool indicates a 90.1% likelihood of the Federal Reserve maintaining current interest rates in March [2] Company Performance - Alphabet (GOOG) is noted for maintaining a strong price trend across short, medium, and long terms, with a solid quality ranking [3] - Amazon.com Inc. (AMZN) shares rose 0.11% ahead of earnings expectations of $1.97 per share on revenue of $211.32 billion, maintaining a strong price trend [6] - Workday Inc. (WDAY) fell 2.44% after announcing a 2% workforce reduction and expected $135 million in restructuring charges, yet it maintains a strong price trend [6] - Shell PLC (SHEL) saw a 2.40% decline after reporting adjusted earnings of $3.26 billion for the fourth quarter, missing analyst expectations [5] Sector Performance - Energy, materials, and real estate sectors led gains, while information technology and communication services stocks contributed to market declines during a rotation away from growth [8] Analyst Insights - BlackRock maintains a "pro-risk" stance, viewing recent market fluctuations as a reshuffling rather than an end to the AI trade, identifying infrastructure as a key beneficiary of trends like AI and low-carbon transitions [9] - The nomination of Kevin Warsh as the next Fed Chair has led to a significant repricing across asset classes, with expectations of a stronger focus on inflation control [10] - BlackRock warns that while the economy shows solid growth, inflation is becoming "stickier," potentially limiting the Fed's ability to cut rates aggressively in 2026 [11]

Group 1 - The analyst team has a proven track record of outperforming across all market conditions, achieving an annualized return of almost 40% over the past decade with a long-only model portfolio return of over 23x [1] - The focus is on income-oriented investments, particularly in lower-risk firms that provide steady dividend payouts [1] - The company specializes in providing research in the energy, shipping, and offshore markets [1] Group 2 - The article serves as an update on Super Micro Computer, Inc. (SMCI), indicating prior coverage of the company [2] - The analyst has a historical focus on tech stocks but has expanded coverage to include offshore drilling, supply industry, and shipping [3] - The analyst has significant experience, having worked as an auditor for PricewaterhouseCoopers before transitioning to day trading [3]