Technology AI, Science and New Things
After revelations about the Chinese startup Deepseek caused a $1 trillion rout in AI stocks this week, big tech earnings are being viewed in a whole new light.
Meta’s robust advertising business and a large jump in net income helped it to shake off investor concerns about the massive capital investments it intends to make in 2025.
Much of that $60 billion in capex will go towards building AI infrastructure, but DeepSeek’s low-cost model has cast doubts over whether that’s all strictly necessary to remain competitive.
As for Microsoft, lacklustre results in cloud computing caused a six per cent slide in shares yesterday, wiping out $150 billion in market value.
Microsoft is also facing scrutiny over its capital spending bill. Alphabet and Amazon release earnings next week. Nvidia’s are due on 26 February.
