AI-linked companies continue rollercoaster ride amid worries over investment sums and profitability

AI-linked companies continued the rollercoaster ride they have endured since hitting record highs in June amid worries over colossal investment sums and their timeline for profitability, with growing debt-servicing costs adding to the uncertainty.

A blockbuster quarterly report from Elon Musk’s SpaceX provided what some hoped would be solid support heading into a crucial earnings season, but mixed after-hours releases from Meta and Tesla muddied the waters again for investors.

Meta lifted its estimates for how much it would spend on artificial intelligence, while Tesla announced lower profits in July-September and cut its capital spending forecast for this year.