Alphabet shares plunged 12.6% and fell further after hours, wiping out US$500 billion in market value as AI spending turned cash flow negative. (EPA Images pic)SINGAPORE: Tech shares slumped in Asia on Friday, the yen rose and bonds surged toward their biggest monthly gain in nearly three years as investors scurried to safety against worries that huge and rising AI spending may not deliver sufficient returns.
Shares in Google parent Alphabet fell 12.6% on Wall Street and slid a little further after hours, to wipe out a withering US$500 billion in market value, as massive AI spending turned the company's cash flow negative.
An aftermarket plunge of 23% in Intel shares and a drop of 7% in Amazon stocks, as they too burn through cash, drove Nasdaq 100 futures down 1.4% and sent stocks of chipmakers around Asia into a tailspin.
