Tech giants Amazon, Google, and others are facing challenges in meeting growing demand for artificial intelligence (AI) services. The outlook has been disappointing, with shares dropping after earnings reports. Amazon warned that it may face difficulties in meeting the increasing demand for its cloud computing sector, citing capacity limitations.
The concerns echo those of rival Microsoft, which said its cloud sales growth was hurt due to a lack of data centers to handle AI product demand. Despite these challenges, some companies are seeing positive results from AI adoption. Palantir’s military analytics business saw a 10% gain, while Pinterest’s ad sales increased by 19%.
The hype surrounding DeepSeek, an AI model that has sparked interest in China’s internet firms, has helped to counter concerns of a trade war. Chinese tech stock trading in Hong Kong is poised to enter a technical bull market after the announcement.
However, economists expect the January jobs report to provide a pulse check on the health of the US economy and labor market, which may offer insight into the overall impact of AI on employment. As investors continue to weigh the pros and cons of AI adoption, tech companies are investing heavily in AI-related projects to remain competitive.
Source: https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-futures-stall-as-amazon-disappoints-jobs-report-looms-004556865.html