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AI Stock Reaction
On Wednesday, shares of Broadcom (NASDAQ: AVGO) declined following a report indicating that Microsoft had reduced its sales growth targets for AI products, impacting investor sentiment. This occurred even as the S&P 500 index rose by 0.3%.
Sales Target Controversy
The report was published by The Information, suggesting that various divisions within Microsoft faced challenges in meeting sales goals related to AI products. However, Microsoft denied the claims, stating, “We did not lower AI sales quotas.”
Market Sentiment
The market’s reaction reflects skepticism about the reduction of sales targets, as many investors remain cautious about the adoption of AI technologies, which are still relatively new. This highlights a broader hesitation among clients regarding the perceived utility and value of AI products.
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