The past week’s technology selloff increased pressure on the companies financing artificial intelligence’s expansion. Their latest spending plans, however, offer little evidence of an immediate retreat.

Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

The Nasdaq fell 5.5% Thursday, Nov. 5, as borrowing costs and the prospect of restrictions on data center construction added to concerns about an AI bubble. Stocks recovered some ground Friday. The turbulence exposed uncertainty about how quickly AI investments will pay off.

Those losses reduced stock market values, rather than directly draining corporate cash balances. A sustained decline could make raising equity more expensive and increase pressure to conserve cash. It does not automatically cancel chip orders or construction contracts.

For now, the clearest guide remains the spending commitments companies outlined before the selloff.

Google parent Alphabet maintained its 2026 capital expenditure forecast of $195 billion to $205 billion in its October earnings call. CFO Anat Ashkenazi said spending would “increase significantly in 2027.” Yet Alphabet also reported negative quarterly free cash flow of $9.1 billion, illustrating the strain of building capacity ahead of anticipated returns.

Microsoft reported $45.2 billion in quarterly capital expenditures. CFO Amy Hood attributed spending below expectations to delayed capacity deliveries. The company still generated $18.6 billion in free cash flow.

“We are building against a growing book of business,” CEO Satya Nadella told analysts.

Microsoft also priced a $25 billion debt offering Oct. 29, with closing scheduled for Nov.

Source link