The gains in chipmakers and losses in their biggest customers underscored a divide in the AI landscape, with investors recently questioning whether Wall Street's AI rally may have become overextended. "Microsoft reported some deceleration in its core cloud business, but a huge increase in capex. That represents a transfer of wealth from Microsoft shareholders to Nvidia shareholders," said Gil Luria, senior software analyst at D.A. Meta Platforms dropped about 3%, while Amazon lost 2.8% following Microsoft's results. Investors are impatient to see more results from massive investments in AI, said Daniel Morgan, senior portfolio manager at Synovus Trust.

Source: The Hindu July 31, 2024 13:42 UTC