Volatility has increased for artificial intelligence stocks in early 2026 as investors scrutinize capital spending hikes by hyperscalers Amazon.comAMZN, Google-parent AlphabetGOOGL and Meta PlatformsMETA. While software stocks have been hammered, even Palantir TechnologiesPLTR, optical networking plays LumentumLITE and CienaCIEN remain bright spots.While some AI stocks rebounded on Feb. 6, there’s a long list of stocks that ended the week down, including chip maker Advanced Micro DevicesAMD. AMD’s higher-than-expected operating expenses outlook spooked shareholders.After Google and Amazon hiked their 2026 capital spending outlooks, their shares sold off. Google may still have positive free cash flow this year but not Amazon or Meta. Is AI a ponzi scheme ?
