By Ahmed Abdelsalam
US technology stocks fell sharply on Friday as investor concerns mounted over the rising costs of artificial intelligence infrastructure.
Intel shares tumble 30% on weak outlook
Intel shares dropped as much as 30% in early trading after the chipmaker warned of a weaker personal computer market while planning increased AI spending. The company's finance chief, David Zinsner, said Intel does not expect positive cash flow this year and forecast lower-than-expected fourth-quarter revenue.
Amazon, Nasdaq also slide
Amazon shares fell up to 6% before recovering slightly after its Thursday earnings missed investor expectations. The tech-heavy Nasdaq opened at its lowest level in over two months, down 2.5%, with other tech names such as Reddit and Roblox also declining.
Alphabet loses $500 billion on AI search impact
The sell-off follows a massive drop in Alphabet, Google's parent, which lost more than $500 billion in market value on Thursday after revealing that its AI-generated search summaries are eating into core advertising revenue. Alphabet shares slipped a further 1% in early Friday trading.
Intel faces $130 billion value erosion
Intel is on track to shed more than $130 billion in value after its earnings update rattled investors. Zinsner noted the PC slowdown would likely persist through the first half of next year and said capital equipment investment had ramped up significantly in the third quarter, with an even larger increase expected in the next three months.
