XLK is trading 2.1% down today as investors reassess the profitability of massive AI infrastructure spending across the technology sector.
- Recent results from Alphabet, Tesla, and Intel highlighted surging capex and weaker cash flow, souring sentiment for the industry.
- The sector is underperforming broader indices ahead of key earnings reports from Microsoft, Meta, Apple, and Amazon scheduled for later this week.
- Markets are increasingly questioning whether heavy AI investments will deliver sufficient near-term returns to justify current valuations.