NEW YORK, Jan 30, 2026, 06:18 EST — Premarket
- Microsoft dropped roughly 10% as investors reacted negatively to the scale of its AI-related expenditures.
- Meta jumped roughly 10% following its forecast of first-quarter revenue beating estimates, despite raising its capital spending outlook.
- Traders are eyeing U.S. producer prices set for 8:30 a.m. ET, with more Big Tech earnings lined up for next week.
U.S. AI stocks, those linked to artificial intelligence, were moving in opposite directions before Friday’s open. Microsoft dropped roughly 10%, whereas Meta climbed around 10%. Nvidia edged up about 0.5%, but Broadcom and AMD slipped lower.
The split came after a tough Thursday for software and growth stocks, as investors pulled back amid rising costs for AI data centers. The Nasdaq dropped 0.72%, while the S&P 500 edged down 0.13%, with tech as the day’s weakest S&P sector. (Reuters)
This is crucial now as earnings turn into a test of whether AI spending is driving growth quickly enough to justify the costs. “All else equal, the market would typically be concerned,” said John Belton, a portfolio manager at Gabelli Funds, noting how fast sentiment can sour after a guidance miss. (Reuters)
Microsoft reported capital expenditures of $37.5 billion in the latest quarter, a jump of almost 66% compared to the same period last year, with roughly two-thirds allocated to computing chips. “Revenues are up 17% and the cost of revenues are up 19%,” said Eric Clark, portfolio manager at the LOGO ETF, highlighting the rising infrastructure costs. (Reuters)
Meta delivered a robust ad-driven quarter alongside an expanded AI push. Revenue climbed 24% to $59.89 billion. The company expects first-quarter revenue between $53.5 billion and $56.5 billion, while raising its 2026 capital spending forecast to $115 billion–$135 billion. CEO Mark Zuckerberg said he’s eager to “advance personal superintelligence” by 2026. (Meta Investor)
Other mega-caps are stirring debate, too. Apple flagged a DRAM memory chip crunch, driven higher by AI data center demand. CEO Tim Cook told Reuters that demand for the latest iPhone is “simply staggering.” (Reuters)
Chip suppliers are still seeing spending plans as a sign of support, despite investors pushing for clearer answers on payback and margins. Demand for AI servers continues to drive sales of graphics processing units (GPUs) and high-bandwidth memory—both sectors currently facing tight supply.
The downside is clear: if cloud growth or ad demand slows but capital spending remains high, investors might lash out at the whole AI sector instead of distinguishing winners. “The one-way bet on AI leadership is now starting to look overcrowded,” noted Fawad Razaqzada at Forex.com. (SWI swissinfo.ch)
Friday’s early data brings the Producer Price Index (PPI) at 8:30 a.m. ET, tracking prices producers receive. This figure often shifts rate expectations and can impact major growth stocks. (Bureau of Labor Statistics)
Next week, the spotlight shifts to Big Tech earnings. Alphabet will report on Feb. 4 after the market closes, with Amazon following a day later, Feb. 5, also post-close. Investors are eager to see if AI services are generating lasting revenue—or just constant spending. (Alphabet Investor Relations)
