Nvidia, AMD and Micron stocks fell sharply in US premarket trading on Thursday as investors questioned whether the artificial intelligence boom can satisfy Wall Street when its biggest customers are sending conflicting spending signals.
Nvidia dropped 2.4%, while AMD and Micron were among semiconductor stocks declining between 2.9% and 5.3% in an early market snapshot.
Nasdaq 100 futures slid 1.93%, reversing part of Wednesday’s technology-led recovery.
Tesla’s reduced investment forecast raised questions about future expansion, while Meta Platforms increased its minimum spending commitment.
Tesla’s spending cut raises questions about future growth
Tesla reduced its 2026 capital expenditure forecast to approximately $20 billion from more than $25 billion, even as quarterly free cash flow reached $1.53 billion.
Its $4.73 billion in capital spending was substantially below analyst expectations. The lower investment helped cash generation but raised questions about the pace of Tesla’s robotaxi, robotics and AI infrastructure expansion.
Shares fell approximately 5.3% before the bell.
Tim Waterer, chief market analyst at KCM Trade told Bloomberg that investors were proving difficult to satisfy. Higher capital expenditure raises concerns about returns, while reducing spending creates doubts about future growth.
However, Tesla has not established how much of the reduction involves AI infrastructure rather than other investments.
Meta’s $145 billion spending ceiling exposes the opposite concern
Meta reported $64.6 billion in third-quarter revenue, up 26% from a year earlier, while raising the lower end of its annual capital expenditure forecast to $135 billion from $130 billion. The upper limit remains $145 billion.
Its earnings release also showed negative free cash flow of $2.12 billion, reflecting substantial infrastructure investment.
Operating profit was affected by a separate $9.89 billion legal charge, meaning the entire decline in operating margins cannot be attributed to AI expenditure.
Importantly, Meta shares initially rose after the results as investors welcomed encouraging adoption of its AI products.
Nevertheless, Ben Barringer, head of technology research at Quilter Cheviot, told The Wall Street Journal that elevated expectations were making it increasingly difficult for technology companies to deliver results strong enough to satisfy investors.
Lam’s earnings beat fails to reassure chip investors
Lam Research reported record quarterly revenue of $8.22 billion and adjusted earnings of $2.20 a share, exceeding expectations.
Yet its shares fell approximately 8.5% premarket after the semiconductor-equipment maker forecast around $8.6 billion in revenue for the following quarter, broadly matching consensus.
The reaction illustrates how investors are demanding more than historical earnings strength.
Nvidia supplies AI accelerators, AMD competes in advanced processors, and Micron provides memory essential to AI computing. All three depend on customers continuing to expand capacity.
Stifel analyst Brian Chin, speaking to MarketWatch, argued that favourable memory-market conditions could persist for another two to three years, even if Micron’s valuation does not rise significantly.
Brent crude above $112 added another potential inflation and financing headwind.
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