BlockBeats news, October 30 — Shares of several major companies in the artificial intelligence infrastructure boom fell sharply, making things even harder for investors who had previously participated in their large-scale stock offerings. On Friday, shares of Intel, Alphabet, and Meta Platforms declined. A round of earnings reports that fell short of expectations pushed these companies' share prices below the purchase prices of investors who had participated in their stock offerings in recent months. The selloff began on Wednesday when Alphabet reported earnings, with the company's advertising revenue from search and other channels coming in below expectations; Intel then disclosed supply chain problems in data center components, further intensifying market concerns.
Both companies highlight doubts about whether the massive investment in artificial intelligence can be sustained. The market is already struggling to absorb large-scale AI-related stock offerings and is also assessing whether huge investments can translate into long-term share price gains. The decline in share prices will further increase the difficulty for companies to raise the capital they need, and it also makes the outlook even less clear for whether Anthropic can match or exceed the fundraising scale of SpaceX's record-breaking listing earlier this year in its IPO.
