Key facts
- Alphabet reported $51.4 billion in capital expenditures for AI infrastructure in three months.
- Alphabet ended the quarter with negative free cash flow of $9 billion.
- SK Hynix's third-quarter operating profit rose more than sevenfold to 83.3 trillion won ($62.9 billion).
- SK Hynix's revenue quadrupled to 104.6 trillion won in the third quarter.
- Samsung Electronics' semiconductor unit reported an operating profit exceeding 100 trillion won.
Alphabet's shares fell sharply in after-hours trading despite solid third-quarter revenue growth and record sales from its cloud business. The company's significant capital expenditure of $51.4 billion for AI infrastructure buildout, coupled with negative free cash flow of $9 billion, raised concerns among investors. Similarly, Samsung Electronics experienced a market downturn following its earnings report, even as it announced record quarterly operating profit driven by memory chip demand. Across global markets, including China, AI stocks have seen significant declines due to similar profitability worries.