Business · Markets · 2 hrs ago
Asian shares slip as investors question the scale of AI spending
Asian share markets slipped on Monday as investors grew concerned about the scale and sustainability of spending on artificial intelligence.
The worry is that large AI investments may not generate enough cash, while the growth rate of that spending may be peaking.
These concerns added to pressure on technology stocks after the Nasdaq had its worst month since April 2025.
Apple, AMD and Palantir were due to report earnings this week, after Intel shares fell nearly 29% on Friday.
Investors will watch whether company results support the high expectations built around AI spending.
Analysts at Goldman Sachs expect spending by major cloud and technology companies to reach $800 billion this year and $1.2 trillion in 2027.
The earnings results could shape market confidence as investors also assess interest-rate decisions and US economic data due this week.
Asian share markets slipped on Monday as investors questioned whether the artificial intelligence investment boom can be sustained.
Concerns about negative cash flow and the scale of AI spending weighed on the technology sector.
Japan’s Nikkei fell 0.5%, while South Korea’s market lost 0.8%.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.4%.
Investors were also watching upcoming earnings from Apple, AMD and Palantir after Intel shares tumbled nearly 29% on Friday.
- Who
- Asian share markets and investors.
- What
- Asian stocks slipped amid doubts about the sustainability of AI investment spending.
- When
- Monday, November 2, 2026.
- Where
- Asian markets, including Japan and South Korea.
- Why
- Investors questioned the scale and sustainability of AI spending, amid concerns about negative cash flow.
This story does not have two clearly opposing sides.
Concerns about negative cash flow and the scale of AI investment spending pushed up the cost of insuring against corporate defaults.
Intel shares tumbled nearly 29% as technology shares sold off on Wall Street.
Binance went back online after hackers stole billions from the platform the previous week.
Asian share markets slipped as worries about the sustainability of the AI investment boom weighed on technology shares.
- Japan
- Nikkei fell 0.5%
- South Korea
- Shares lost 0.8%
- Asia-Pacific
- MSCI index excluding Japan eased 0.4%
- Hyperscaler capital spending
- Goldman Sachs expects almost $800 billion this year
- 2027 capital spending
- Goldman Sachs projects hyperscaler capex of $1.2 trillion
3 sources
What people are saying
Earnings growth is strong, but it is no longer accelerating
Similarly, Q3 results support our view that AI investment spending will continue to grow but that the growth rate of AI capex is peaking.