US Stock Market Move | AI cloud service providers continue to decline; Nebius (NBIS.US) falls over 7%.

On Friday, AI cloud service providers continued to decline, with Nebius (NBIS.US) and CoreWeave (CRWV.US) falling over 7%, and Oracle Corporation (ORCL.US) dropping more than 4%. On the news front, negative signals kept emerging from the AI investment space. Amazon.com, Inc. continued to maintain high AI capital expenditure, triggering market concerns; Intel Corporation provided guidance below market expectations, forecasting fourth-quarter revenue of US$15 billion to US$16 billion and adjusted earnings per share of 25 cents, significantly below expectations. Its shares fell sharply after the results, dropping more than 30% at one point during the session, and the company's market value evaporated by more than US$137 billion. Market concerns about the cost of the AI boom have further intensified. At the same time, major technology companies are undergoing a broader shift in how they finance spending. Massive data center investments have turned companies that were once lightly indebted into major borrowers. Both Alphabet and Meta recorded net cash outflows in the September quarter. Microsoft Corporation is the only company in this group that is not burning cash, but it also launched a US$25 billion bond offering on Thursday. Technology giants are still able to sustain this level of spending, but investors have become increasingly cautious about smaller AI cloud companies that have borrowed heavily to fulfill large backlogs of orders.