US tech shares fall as AI spending worries hit earnings
Original title: US tech stocks see sharp falls over AI cost fears
Intel fell as much as 30% and Reddit 26% after weaker outlooks, while Alphabet had already lost more than $500 billion.
US tech stocks slid on Friday as investors focused on the cost of AI build-outs. Intel fell as much as 30% after warning of a weaker PC market while increasing AI equipment spending, and Amazon fell as much as 6% before recovering after earnings missed expectations. Nasdaq opened down 2.5%, its lowest in more than two months. Alphabet continued to fall after Thursday’s drop of more than $500 billion in value, which the company linked to AI summaries affecting search advertising.
- Intel’s finance chief forecast lower-than-expected fourth-quarter revenue and a PC slowdown into next year.
- Amazon said spending rose six-fold over three months and exceeded cash generated.
- Reddit warned Google’s AI-driven search was hurting referral traffic; Roblox fell nearly 20%.
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- United States
From the original article
2 min read at bbc.co.uk
US stocks have continued to slide as concerns continue to intensify over the increasing costs of the artificial intelligence (AI) build out. Shares in Intel continued their overnight slide into early trading on Friday, falling as much as 30% after the chip maker warned of a weaker computer market even as it plans to increase spending on AI.
By mindracer · bbc.co.uk
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