AI Spending Concerns Weigh on U.S. Tech Stocks as Iran Risks Rise

Artificial intelligence spending concerns weighed on U.S. technology shares this week, while escalating tensions between Washington and Tehran added risks to energy markets. The combined pressures put corporate cash generation, financing costs and geopolitical developments at the center of the week’s market debate.

Meta reported third-quarter revenue of $64.6 billion, up 26% from a year earlier, but free cash flow was negative $2.12 billion. The quarter marked the company’s first cash burn in more than a decade. Meta set its 2026 capital spending outlook at $135 billion to $145 billion. Its shares fell as much as 8% after the earnings release, while Nvidia and CoreWeave also came under pressure. Investors renewed their focus on whether infrastructure spending can produce returns that cover financing costs.

Anthropic’s first-half revenue was about $16.3 billion, up from $1.1 billion a year earlier, while computing and infrastructure costs approached $9 billion. Anthropic had cloud contracts worth about $450 billion over seven to 10 years. Anthropic’s total infrastructure commitments exceeded $600 billion and could reach about $750 billion if projects under negotiation are completed.

The figures highlighted the gap between rapid revenue growth and the cost of building AI infrastructure. Meta’s negative free cash flow added to scrutiny of how much capital companies need and whether returns can justify the spending.

Geopolitics added another source of risk. President Donald Trump said he did not rule out another small-scale operation against Iran, while also saying the war might end soon. A U.S. intelligence memo warned that Iranian plots to assassinate U.S. officials overseas had reached an advanced stage. Iran warned that if U.S. and Israeli attacks resumed, retaliation could widen to U.S. military bases, energy facilities and undersea communications cables in the Gulf.

Midterm politics remained another unresolved factor. MAGA Inc. had directed nearly $277 million to Republican candidates since September, and Trump allies used farm assistance and health care refunds to appeal to voters. Oil prices, bond yields and major technology companies’ earnings remained key market variables as questions about AI funding and the election outlook continued.