AI Spending Fears Hit Tech Stocks as Amazon, Intel Disappoint

Amazon and Intel results rattled tech stocks Thursday, fueling investor fears that heavy AI infrastructure spending is straining cash flows and consumer demand for PCs and devices. Amazon forecast holiday sales below expectations, while Intel cited weak PC demand and a $600 million loss from an Israel factory explosion. Alphabet and Meta burned cash, and Microsoft sold $25 billion in debt, highlighting the industry's borrowing binge. Amazon fell 7% after hours, with AI cloud stocks down up to 6.7%. Intel dropped 18%, dragging chip and PC makers lower, though analysts noted Intel's PC weakness may not reflect broader AI chip demand.