European Stocks Dip on AI Spending Fears

European shares fell on Friday as disappointing results and spending outlooks from major U.S. technology companies renewed concern that costly AI infrastructure investments may not deliver adequate returns. The STOXX 600 slipped about 0.25% but remained on track for its strongest month since June, while chip and equipment makers including ASML and Infineon came under particular pressure. Alphabet’s weaker-than-expected revenue and negative free cash flow, Amazon’s heavy capital spending and cash outflows, and Intel’s warning about soft PC demand weighed on sentiment. Europe’s greater exposure to sectors such as energy, banks and defense helped cushion the broader market, while investors also watched the implications of rising borrowing to finance data centers.