US Tech Stocks Slide Over AI Cost Concerns
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US stocks continue to slide as fears intensify over the increasing costs of AI build-out.
Image source: Michael Nagle/Bloomberg via Getty Images
By Rachel Clun
Business reporter, New York
Published 30 October 2026, 14:50 GMT
Updated 6 minutes ago
Intel shares tumbled as much as 30% in early trading on Friday, following its overnight slide, after the chipmaker warned of a weaker computer market despite plans to boost AI spending.
Amazon shares also dropped by 6% before recovering after its earnings report fell short of market expectations.
The tech-heavy Nasdaq stock exchange opened 2.5% lower on Friday, with other tech stocks like Reddit and Roblox continuing their downward trend.
These losses follow Alphabet's stock value plummeting by over $500 billion on Thursday, following the revelation that its AI summaries were impacting core search advertising revenue.
Intel's stock value was down by over $130 billion after its earnings update shocked investors. Finance chief David Zinsner stated the company didn't anticipate bringing in more cash than it spent in 2026 and forecast lower-than-expected Q4 revenue.
"Looking ahead, we see the PC slowdown continuing at least through the first half of next year," Zinsner said in Intel's third-quarter earnings report.
Reddit stock plummeted by 26%, due to weaker-than-expected daily user figures and concerns that Google's AI-driven search was impacting referral traffic. Roblox shares also dropped by nearly 20% as daily active user numbers declined.
Analysts raised questions about the returns from the significant AI investments by major tech firms, with several reporting earnings this week, including Microsoft.
Chris Low from investment management firm FHN Financial told Reuters, "The companies are 'showing some pretty significant growing pains as they aggressively pursue the AI build-out.'"
He added, "The thinking is that these signs suggest that the entire sector is going to slow down."