AI Data Center Suppliers Sink Despite Strong Earnings; Sector Loses $300 Billion Since October 6

Shares of key AI data center equipment suppliers fell sharply Friday, extending losses into a second session even after blowout results, as investors sold into strength. Bloom Energy (BE) dropped 11% and Comfort Systems (FIX) fell 9% on Friday, the 23rd; Credo (CRDO) lost 9%. Bloom Energy said quarterly revenue rose 138% year over year and raised its full-year growth outlook to about 122%. Comfort Systems said its backlog nearly doubled to $17.8 billion. Still, Bloom's cash flow turned negative and margin improvement lagged revenue growth. Since the S&P 500's record closing high on October 6, data center builders and suppliers have posted a median decline of 23%, per Yahoo Finance calculations, including Caterpillar (CAT), GE Vernova (GEV), Vertiv (VRT) and Eaton (ETN). Power producers fell 14% and Nvidia (NVDA) 11%, while the big tech companies funding the buildout slipped only about 5%. Roughly $300 billion in market value has been erased from 12 major data center and power companies since October 6. Jefferies' Aniket Shah said power is the biggest constraint on AI data center construction. Apollo's Torsten Sløk wrote that demand for computing power far exceeds supply, and that developers and construction-stage investors face the real risk if scarcity fades. Earnings from Microsoft (MSFT), Alphabet (GOOGL), Vertiv (VRT) and Amazon (AMZN) this week will test spending plans.