Business · Markets · 1 hr ago
AI spending concerns deepen sell-off in tech stocks
US technology shares fell sharply on Friday as investors questioned whether heavy spending on artificial intelligence will pay off.
Amazon reported weaker-than-expected profit and said it would spend more on AI, while Intel’s forecast disappointed investors.
Intel shares fell nearly 30%, and the Nasdaq ended the day down nearly 3%.
Amazon, Microsoft and Alphabet have all signaled continued big investments in data centers and chips.
Together with Meta, the four companies are expected to spend more than $700 billion on capital investment this year, much of it on AI infrastructure.
Investors are demanding evidence that AI spending will earn returns, after months of enthusiasm for the technology.
Tech shares also fell in South Korea and Japan, while Wall Street’s attention is turning to Tuesday’s US midterm elections.
Technology shares fell sharply on Friday as weak earnings and heavy artificial-intelligence spending heightened investor concerns.
The Nasdaq ended the day down nearly 3%, while Intel shares sank nearly 30% after its outlook disappointed.
Amazon missed earnings expectations and reported $42.4 billion in negative free cash flow over the prior 12 months.
Investors are questioning whether the hundreds of billions of dollars invested in AI will generate enough profit and productivity.
The sell-off came as investors shifted toward safer assets, including US Treasuries.
- Who
- Technology companies and their investors, including Amazon and Intel.
- What
- Technology shares fell as earnings and spending plans deepened worries about returns on AI investment.
- When
- Friday, October 30, 2026.
- Where
- North American markets, including Wall Street and Canada’s S&P/TSX Composite Index.
- Why
- Investors were concerned about weak earnings, high AI spending and whether those investments would pay off.
This story does not have two clearly opposing sides.
Anthropic’s IPO filing prompted optimism about AI-linked shares.
Alphabet shares fell more than 12% after the company reported higher cash spending on AI.
Technology shares fell further after disappointing earnings and outlooks from major companies.
The Nasdaq ended down nearly 3%, while Intel shares fell nearly 30%.
- Nasdaq
- Down nearly 3% on Friday
- Intel
- Shares fell nearly 30%
- Amazon free cash flow
- Negative $42.4 billion over the prior 12 months
- Amazon property and equipment spending
- $94.8 billion, primarily on AI technology
- S&P/TSX Composite
- Down about 2.3% by mid-afternoon
7 sources
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What people are saying
We're moving out of the hopes and dreams phase of the AI trade and into the 'show me' phase