US tech stocks falling today deepened a two-day sell-off, as investors weighed the rising cost of artificial intelligence against softer earnings and demand warnings. Shares in Intel fell sharply again, and the tech-heavy Nasdaq opened at its lowest level in more than two months before closing 2.8% lower.
Intel’s slide and the PC warning
Intel was at the centre of Friday’s losses. The chip maker’s shares plummeted by 28% on Friday, after earlier trading showed falls of as much as 30%, and the company was on track to shed more than $130bn in market value. Management said it still planned to increase spending on AI even though demand for personal computers — a major outlet for its processors — remains weak.
Finance chief David Zinsner said the firm did not expect to bring in more cash than it spent this year and forecast lower-than-expected revenue for the fourth quarter. “Looking ahead, we see the PC slowdown continuing at least through the first half of next year,” he said in the third-quarter earnings report. He also said equipment investment had risen sharply in the third quarter and was expected to be “even more significant” in the following three months.
Alphabet, Amazon and other tech names
Alphabet’s stock fell another 1.4% on Friday after a 12% plunge on Thursday that took more than $500bn off its market value. The company said AI summaries shown as top answers in search were affecting its core search advertising revenue, and it expects to spend up to $205bn this year on investments that are almost entirely AI-related.
Amazon shares recovered some overnight losses but were still down 1.4% at the end of Friday trading, after earlier falling as far as 6%. The company said it had spent more cash than it was making, with spending rising six-fold over three months, and has committed to $220bn this year for investments including AI data centres, network equipment and servers. Reddit stock plunged by 29% after weaker-than-expected daily user figures and a warning that Google’s AI-driven search was hurting referral traffic. Roblox fell 18% as daily active users dropped.
Why investors are uneasy about AI spending
Major tech firms have ramped up AI budgets. Meta, Alphabet, Oracle, Amazon and Microsoft have together committed to spending $800bn in 2026. Earnings from several companies this week, including Microsoft, left analysts asking how soon that outlay will pay off. Chris Low of FHN Financial said much of the market move was a reaction to big players such as Amazon and Google, arguing they were “showing some pretty significant growing pains as they aggressively pursue the AI build-out” and that the signs suggested the sector could slow.
Kathleen Brookes of trading firm XTB said investors had “turned ruthless, punishing any signs of disappointment” in third-quarter earnings, with Alphabet and Intel in the “crosshairs.” She noted that November is often a strong month for stocks, but said continued struggle in AI names could suggest that trade is past its peak. Even after the drop, the Nasdaq is still up 7.8% over the past year; Amazon is up nearly 8%, while Alphabet is down 1.3%.
Timeline: what has happened so far
- Thursday: Alphabet’s market value fell by more than $500bn after it linked AI search summaries to pressure on advertising revenue; Amazon reported spending more cash than it earned.
- Thursday (Intel): David Zinsner warned of no expected positive cash flow this year, lower fourth-quarter revenue and a PC slowdown lasting at least through the first half of next year.
- Friday open: The Nasdaq opened at its lowest level in more than two months, down about 2.5%, with Intel, Reddit and Roblox under heavy pressure.
- Friday close: Intel was down about 28%; Amazon and Alphabet each closed about 1.4% lower; the Nasdaq finished 2.8% down and posted its worst October month since March 2025.
Aasan alfaaz mein
America ki bari tech companies ke shares gir rahe hain kyunke AI par bohot zyada kharcha ho raha hai. Intel ka share roughly 28% gir gaya aur company ki market value mein $130bn se zyada kami aayi. Google wali Alphabet aur Amazon ke shares bhi kamzor rahe. Pakistan ke ordinary readers ke liye seedha matlab yeh hai ke global markets restless hain, lekin local petrol, bijli bill ya retail prices is khabar se seedha nahi badalte.
