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. 1
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. 2
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. 3
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. 4
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.” 5
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. 6
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. 7
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. 8
