Meta, Alphabet and Intel Stock Sales Leave Subscribing Investors "Deep in the Red"

October 30: Shares of several major companies at the heart of the artificial intelligence infrastructure boom have fallen sharply, making things even harder for investors who took part in their large stock offerings. On Friday, shares of Intel, Alphabet and Meta Platforms declined. A round of disappointing earnings pushed their share prices below the levels paid by investors who bought into their stock offerings in recent months. The selloff began on Wednesday when Alphabet reported earnings, with advertising revenue from its search and other channels coming in below expectations; Intel then disclosed supply chain problems involving data center components, further aggravating market concerns. Both companies underscore doubts about whether the massive investments in artificial intelligence can be sustained. The market is already struggling to absorb large-scale AI-related stock issuance and is also assessing whether the huge investments can translate into long-term share price gains.

The share declines will further increase the difficulty companies face in raising the funds they need, and they also make the outlook more uncertain for whether Anthropic can match or exceed the amount raised by SpaceX in its record-breaking listing earlier this year.