P203news.today203Sat 31 Oct07:15
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BUSINESS 3/9
Tech stocks plunge as earnings fuel AI spending doubts
Major technology companies' disappointing earnings have sparked a global sell-off, with investors questioning whether massive artificial intelligence investments will generate adequate returns.
A sharp sell-off in technology stocks deepened on Friday after disappointing earnings from Amazon, Intel and Alphabet revived concerns about the scale and profitability of artificial intelligence spending. Intel shares fell as much as 30%, Amazon fell around 6-7% and Alphabet continued losses from Thursday's 12-13% drop. The Nasdaq composite fell more than 2.5% on Friday, with roughly $1 trillion wiped from the index in a week and about $2-3 trillion in a month. Amazon reported third-quarter revenue and earnings that missed expectations and negative free cash flow, though it maintained a 2026 capital expenditure forecast of $220 billion. Intel warned of ongoing PC market weakness and said it did not expect positive cash flow this year. Investors worry that the enormous debt companies are taking on to finance data centre expansions may not be sustainable if returns do not materialise quickly.
From 9 outlets:
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