Meta, Alphabet and Intel share sales leave investors with heavy losses

Odaily: A sharp decline in the share prices of several major companies riding the artificial intelligence infrastructure boom has made life harder for investors who previously took part in their large stock offerings. On Friday, shares of Intel, Alphabet and Meta Platforms fell.

A disappointing round of earnings had already pushed these companies' share prices below the levels at which investors who joined their stock offerings in recent months bought in. The sell-off 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 aggravating market concerns. Both companies underscore doubts about whether the massive AI investment can be sustained.

The market is already struggling to absorb large-scale AI-related stock offerings and is also assessing whether the huge investments can translate into long-term share price gains. The decline will further increase the difficulty for companies to raise the capital they need, and it also makes the outlook more uncertain for whether Anthropic can match or exceed the fundraising scale of SpaceX's record listing earlier this year in its IPO.