Amazon and Intel stumble as AI spending strains tech giants

Amazon and Intel reported disappointing financial results on Thursday, triggering declines in AI cloud and semiconductor stocks as investors worry about the escalating costs of the AI infrastructure boom. Amazon forecast holiday-quarter sales below Wall Street expectations, citing surging data-center spending that has turned tech giants into major borrowers, while Intel flagged weak PC demand and a memory chip shortage. Alphabet and Meta also burned cash in the September quarter, and Microsoft issued a $25 billion debt sale, underscoring widespread financial strain. Intel's shares fell 18% after it blamed a factory explosion in Israel for a two-week shutdown costing $600 million in lost revenue. The semiconductor index dropped 13% from its October high, with AMD and Broadcom also declining, though some analysts noted Intel's PC woes may not reflect broader AI chip demand.