US tech stocks sell off on weak earnings and AI spending worries
Overview
US tech stocks fell for a second straight day as investors questioned the hundreds of billions of dollars companies are spending on AI. Intel fell as much as 30% after its profit forecast came in far below analyst expectations, and Alphabet dropped more than 12% after reporting heavier cash burn from AI investment.
Alphabet also said its AI summaries were affecting search advertising revenue, and it lost more than $500bn in market value on Thursday.
Meta, Alphabet, Oracle, Amazon and Microsoft have committed $800.6bn to spending in 2026, according to the report. The Nasdaq fell more than 3.5% on Friday and lost nearly $1tn over the week, though it remains up 7.6% over the past year. The S&P 500 fell more than 1% on Friday and was on track to erase its October gain.
Written by AI from the articles below · updated Oct 30, 2:48 PM ET
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Developments
2 developments
- Oct 30, 2:27 PM ET · 1 articleUS tech stocks sell off after weak earnings and AI spending worriesThe Guardian · AI: Tech sell-off wipes nearly $1tn from Nasdaq in one week after weak earnings
- Oct 30, 12:13 PM ET · 1 articleUS tech stocks fall sharply on AI spending and cost fearsHacker News · AI (150+ points): US tech stocks fall sharply as investors worry about AI spending costs
Article timeline
The articles in this story. Times are ET.
- The Guardian · AINewsTech sell-off wipes nearly $1tn from Nasdaq in one week after weak earnings
AIThe Nasdaq lost nearly $1tn in value in one week as tech stocks sold off after disappointing earnings from leading tech companies. The S&P 500 fell more than 1% Friday and was on track to erase its October gain, while the Nasdaq composite dropped more than 3%. Intel fell nearly 30% after its profit forecast fell far short of analyst expectations, and Alphabet dropped more than 12% on Thursday after reporting heavier summer cash burn from AI investment.
- Hacker News · AI (150+ points)BlogUS tech stocks fall sharply as investors worry about AI spending costs
AITech stocks fell for a second day as investors questioned the hundreds of billions of dollars firms are spending on AI, with Intel down as much as 30% on Friday. Alphabet lost more than $500bn in market value on Thursday after saying its AI summaries were affecting search advertising revenue, while Meta, Alphabet, Oracle, Amazon and Microsoft have committed $800.6bn to spending in 2026. The Nasdaq fell more than 3.5%, though it remains up 7.6% over the past year.
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