Amazon invests $200 billion as Meta plans AI spend

Key Takeaways

• Amazon plans to invest $200 billion by 2026 in AI, chips, robotics, and satellites, leading to investor nervousness and a stock drop.
• Meta Platforms expects to spend $115 billion to $135 billion on AI infrastructure by 2026, while Alphabet (Google) anticipates $175 billion to $185 billion in 2026 for similar investments.
• Foxconn (Hon Hai), an Nvidia partner, reported NT$730 billion ($23 billion) in sales, indicating strong demand for AI chips and hardware.
• AMD's stock fell nearly 7% due to a weak Q1 sales forecast of $9.8 billion, raising concerns about its competition with Nvidia in AI chips, despite CEO Lisa Su's optimism for H2 growth for next-gen AI servers, including for OpenAI.
• US software and data services stocks, including Palantir, experienced significant declines, erasing up to $1 trillion in market value since late January, due to fears of AI tools disrupting traditional software.
• The launch of Anthropic's Claude Opus 4.6 fueled investor worries about AI agents replacing parts of existing applications.
• Bedrock Robotics, an AI startup, raised $270 million, valuing it at $1.75 billion, to automate heavy construction vehicles, with Nvidia's venture arm among its investors.
• Equifax launched new AI-powered tools for fraud detection and credit risk assessment.
• Okta is seeing increased demand for its identity management services as companies deploy more AI-powered agents.
• Super Micro Computer, a partner to both AMD and Nvidia, raised its revenue outlook due to strong AI server demand.

Amazon to invest $200 billion in AI and new tech

Amazon announced it will spend $200 billion in 2026 on data centers, satellites, AI, chips, and robotics. CEO Andy Jassy stated this huge investment is due to strong demand and new opportunities. The company also reported record sales of $213.4 billion in its last quarter, a 14 percent increase from the previous year. Profit grew 6 percent to $21.2 billion.

Amazon's $200 billion AI plan worries investors

Amazon plans to invest $200 billion in 2026 for AI, chips, robotics, and satellites, which made investors nervous. The company reported strong fourth-quarter 2025 revenue of $213.4 billion, up 14 percent. However, its net income of $21.2 billion was slightly below forecasts, causing shares to drop 8-10 percent after hours. CEO Andy Jassy explained the investment supports growth in AWS, advertising, and custom chips. The significant spending on AI infrastructure led to a sharp drop in free cash flow, testing investor patience for long-term returns.

Amazon stock drops after huge AI investment news

Amazon's stock fell up to 10 percent after the company announced a $200 billion capital expenditure plan for 2026. CEO Andy Jassy stated this investment targets AI, chips, robotics, and satellites. While Amazon reported a strong holiday quarter with revenue beating expectations and AWS showing its fastest growth in 13 quarters, investors worried about the massive spending. The company's first-quarter operating income forecast also came in below analyst expectations. This large AI investment significantly impacted free cash flow, causing investor concern.

Foxconn sales jump showing strong AI chip demand

Hon Hai Precision Industry Co. Ltd., also known as Foxconn, reported a large increase in sales for February. This Nvidia partner, a major electronics maker, saw revenue reach NT$730 billion, or $23 billion. This sales surge signals strong demand for artificial intelligence chips. Analysts expect Hon Hai's sales to rise by 28 percent for the first quarter ending in March.

Foxconn sales climb showing strong AI hardware need

Hon Hai, also known as Foxconn, announced its revenue reached NT$730 billion, or $23 billion, last month. This key partner of Nvidia, which makes servers for data centers, shows strong demand for AI hardware. Analysts predict a 28 percent increase in sales for the three months ending March. The company benefits from the growing AI hardware industry.

AMD stock drops on weak sales forecast for AI chips

Advanced Micro Devices, or AMD, saw its shares fall almost 7 percent after a disappointing quarterly sales forecast. This raised investor doubts about its ability to compete with AI chip leader Nvidia. AMD expects first-quarter revenue of about $9.8 billion, which is lower than the previous quarter's $10.27 billion. CEO Lisa Su stated that demand for AMD's next-generation AI servers, including those for OpenAI, will grow sharply in the second half of the year. In contrast, Super Micro Computer, a partner to both AMD and Nvidia, saw its shares jump after raising its revenue outlook due to strong AI server demand.

Meta investors cautious as AI spending grows

Meta Platforms Inc. is making artificial intelligence central to its business strategy after strong fourth-quarter results. The company plans to spend $115 billion to $135 billion on capital expenditures in 2026 for AI infrastructure. CEO Mark Zuckerberg believes AI will greatly change how Meta operates and serves users. Other big tech companies like Alphabet also plan huge AI investments, with Alphabet expecting to spend $175 billion to $185 billion in 2026. This massive spending has made some investors cautious, and Meta's stock has declined 5 percent in the past 12 months.

Okta secures AI agents with identity management

As companies increasingly use AI-powered agents for tasks, these digital workers also need strong identity security. Okta helps organizations manage digital identities, ensuring only authorized users can access software. The growth of AI agents creates more demand for Okta's services. Investors consider Okta stock a buy due to its opportunity in securing these AI agents.

Bedrock Robotics raises $270 million for AI construction

Bedrock Robotics, a two-year-old AI start-up, raised $270 million to automate heavy construction vehicles like excavators. This funding round, led by CapitalG and Valor Atreides AI Fund, values the company at $1.75 billion. Other investors include 8VC and Nvidia's venture arm. Bedrock's co-founder and CEO, Boris Sofman, and other early employees came from Waymo, bringing experience in autonomous technology. The San Francisco-based company aims to use AI to speed up building housing and data centers.

Palantir stock falls on AI disruption worries

Palantir Technologies stock continued to fall, extending a two-day decline, as investors worry that new AI tools could disrupt traditional software companies. The software and services sector has lost about $830 billion in market value since January 28 due to these fears. Palantir's stock closed down 5.5 percent at $131.83, after plunging 12 percent the day before. The recent launch of Anthropic's Claude Opus 4.6, with its advanced capabilities, fueled concerns about AI agents replacing parts of existing applications. Analysts also noted that Amazon's forecast of $200 billion in AI capital expenditure added to investor caution about returns.

US software stocks drop on AI disruption fears

US software and data services companies saw their stocks fall for a seventh straight session, with the S&P 500 software and services index dropping 4.6 percent. This "software-mageddon" has erased about $1 trillion in market value since January 28, as investors fear AI tools could disrupt the sector. Major companies like Microsoft, Salesforce, and Adobe experienced significant drops. Thomson Reuters also fell after concerns that Anthropic's new AI plug-in could affect its legal business. This uncertainty has led to a rotation out of technology stocks into more traditional sectors.

Equifax launches new AI tools for fraud detection

Equifax launched new AI-powered tools to improve fraud detection and credit risk assessment. These tools include Credit Abuse Risk and Synthetic Identity Risk models, designed to combat complex fraud patterns. Equifax also expanded its employment and income verification services for lenders and auto dealers. While these products align with Equifax's core business, its shares currently trade at a significant discount. The stock is about 30 percent below analyst targets and has seen an 18 percent decline in the last 30 days.

Sources

• Amazon Plans to Spend $200 Billion on A.I. and Other Projects This Year
• Amazon’s $200 billion AI bet tests investors’ nerves as earnings rise below expectations
• Amazon stock falls after earnings on $200 billion capex plan
• Nvidia Partner Hon Hai’s Sales Soar in Sign of Strong AI Demand
• Nvidia Partner Hon Hai’s Sales Soar in Sign of Strong AI Demand
• AMD falls as dour forecast shows cracks in AI trade
• Big Tech’s AI Bill Is Ballooning – And Meta Investors Are Getting Cautious
• AI Agents Need Identity Security Too. This Company Does the Job.
• Bedrock, an A.I. Start-Up for Construction, Raises $270 Million
• Palantir stock extends two-day slide after hours as AI disruption fears keep traders defensive
• US software stocks stabilize after bruising selloff on AI disruption fears By Reuters
• Equifax Rolls Out New AI Tools As Shares Trade At Valuation Discount