Nasdaq hits three-month low as Amazon and Intel rattle AI trade

The Nasdaq fell to its lowest in nearly three months on Friday after Amazon's aggressive AI spending plans and Intel's cash-burn warning heightened concerns over soaring AI buildout costs and the timeline for returns. Amazon was down 2% after reporting a sharp cash outflow in the third quarter and signaling another increase in capital expenditure next year. Intel was set for its steepest one-day drop on record with a near 29% slide after saying it would burn cash this year due to a weak PC market, manufacturing hurdles, and heavy spending to expand production. The warning sparked a selloff in global chip stocks, with Nvidia down 3.7% and AMD sliding about 10%. Amazon and Intel were set to wipe out near $200 billion in combined market value, setting up the Nasdaq-100 to erase just over $1 trillion on Friday. The S&P 500 information technology index was the biggest drag, down 3.9%. A $6.3 billion record heist at Binance also dented appetite for crypto-linked and technology stocks, with Coinbase down 13%.