Intel and Alphabet Shares Fall After Earnings, Intensifying Concerns Over AI Funding

The share prices of several large companies involved in the artificial intelligence infrastructure boom have fallen sharply, making things even more difficult for investors who previously participated in their major stock offerings. On Friday, the share prices of Intel, Alphabet, and Meta Platforms declined. After a round of disappointing earnings reports, the stock prices of these companies dipped below the purchase prices paid by investors who took part in their offerings over the past few months. The downturn began on Wednesday when Alphabet released its earnings report, revealing that advertising revenue from search and other channels fell short of expectations. Shortly after, Intel disclosed problems in its data center component supply chain, further heightening market concerns. Both companies highlighted doubts in the market about whether the massive investments in artificial intelligence can continue. The current market is already struggling to absorb large-scale AI-related stock offerings and is also weighing whether these huge investments can be translated into long-term share price gains. Falling share prices will further increase the difficulty for companies to raise necessary capital and have made the outlook for Anthropic’s IPO—reaching or surpassing the record fundraising achieved by SpaceX earlier this year—even more uncertain.