Wall Street’s artificial intelligence trade split sharply on Thursday after mixed results from two of its biggest names. Alphabet, Google’s parent, reported third-quarter revenue of $127.6 billion, up 25 percent, with Google Cloud revenue more than doubling to $30.7 billion, yet its shares fell about 10 percent in after-hours and premarket trading after it reported negative free cash flow of $9.07 billion and kept capital spending guidance at $195 billion to $205 billion.
Microsoft told the opposite story: fiscal first-quarter revenue rose 19 percent to $92.3 billion, Azure cloud revenue grew 48 percent, and its shares climbed about 3.5 percent. Nasdaq futures fell more than 1 percent as investors weighed whether huge AI infrastructure spending is turning into cash quickly enough.
Samsung also disappointed, dragging South Korea’s Kospi lower, while Oracle rose on a stronger cash-flow outlook. With Amazon reporting later on Thursday and Apple next week, investors are now demanding proof, not just promises, from AI spending.
Sources: Reuters, Bloomberg. Written in our own words for information only.