BUSINESS · AI-ASSISTED SUMMARY
Asian Markets Slip as AI-Related Earnings Raise Stakes for Tech Giants
WHY IT MATTERS
The mixed results from tech giants raise concerns about the impact of the AI boom on traditional revenue streams, with Alphabet's ad generation services being particularly affected, and may influence the performance of Asian markets in the coming days.
What happened
Asian shares gave up earlier gains on Thursday as AI-related earnings announcements prompted mixed responses. In Hong Kong, the Hang Seng Index opened down six points, or 0.03 percent, at 23,088.
Samsung Electronics reported a nearly ninefold increase in operating profit, driven by robust demand for AI chips, but its shares still slid more than four percent. Alphabet's shares fell 10 percent in after-hours trading after a hefty cash burn, while Microsoft's shares rose three percent after beating forecasts with better-than-expected cash flows.
The US Federal Reserve held interest rates steady, but two committee members voted for a hike, and Chairman Kevin Warsh's confident note on the inflation outlook sparked a rally in Treasuries.
LINKED SOURCES
HK slips as Korean results raise stakes for AI giants
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