Big Tech’s AI promises become a ‘show me’ story for investors

Investors balked at heavy spending on AI without results

With six companies inside a group known as the Magnificent Seven already having reported, year-over-year earnings growth has slowed to nearly 30%.

After a jam-packed week of earnings reports from megacap technology companies, one thing is clear: as profits slow, investors aren’t impressed by artificial intelligence promises anymore. They want to see results.

With six companies inside a group known as the Magnificent Seven already having reported, year-over-year earnings growth has slowed to nearly 30% in the second quarter, down from 50% in the prior period. Analysts expect that rate to decelerate further, to about 17% for those companies in the third quarter.