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Fri, 30 Oct 2026

Fri, 30 Oct 2026 US tech stocks see sharp falls over AI cost fears

Shares in Intel continue to fall while the tech-heavy Nasdaq opens at its lowest level in more than two months.
US stocks plunged on Friday, with major tech companies experiencing significant losses due to concerns over rising costs associated with artificial intelligence (AI) development. Intel's shares dropped by as much as 30% after warning investors of a weaker computer market and increased spending on AI. Amazon's stock fell 6%, although it recovered somewhat later in the day, while Alphabet, the parent company of Google, continued to decline, down 1% from its massive Thursday loss. The tech-heavy Nasdaq index opened at its lowest level in over two months, with a 2.5% drop, as other tech stocks like Reddit and Roblox also declined. Intel's finance chief warned investors that the company did not expect to generate more cash than it spent this year, while Amazon revealed increased spending on AI, which had risen six-fold over three months. Analysts pointed out that several major tech companies have reported earnings this week, raising questions about the profitability of their massive investments in AI. Chris Low from FHN Financial noted that the market was reacting to concerns about "growing pains" among leading tech players like Amazon and Google. The thinking is that these signs suggest a slowdown across the entire sector. Several major tech companies have reported earnings this week, including Microsoft, with analysts raising questions about the payout from their significant investments in AI.