US Tech Giants Navigate AI Investments Amid Market Volatility

News Desk

San Francisco, California: US IT titans witnessed their shares fluctuate this week as investors tried to predict whether artificial intelligence (AI) will fill coffers or drain them.

While staying on the cutting edge by investing in AI is important, analysts noted that the market wants the financial engines of tech firms to remain strong to support these investments.

Apple and Amazon are the latest titans to see their quarterly earnings scrutinised, focussing on how their core businesses are performing and whether their cloud and AI strategies are paying off.

Amazon reported that its profit in the recently ended quarter doubled, driven by renewed momentum in its Amazon Web Services (AWS) cloud computing business. Revenue at the AWS unit grew but the e-commerce giant’s overall sales of $148 billion fell just shy of market expectations, causing shares to drop in after-market trades. Additionally, revenue from Amazon’s advertising sector was below expectations.