Nasdaq hits three-month low as Amazon, Intel AI spending worries mount

The Nasdaq fell to its lowest level in nearly three months on Friday, driven by Amazon's aggressive AI spending plan and Intel's cash burn warning, which heightened concerns about AI infrastructure costs and return timelines. Amazon slipped 2% after reporting a sharp third-quarter cash outflow and signaling higher capital expenditure next year. Intel plunged over 30%, its worst one-day loss on record, after warning of cash burn due to weak PC demand and manufacturing hurdles. The selloff hit global chip stocks, with Nvidia down 3% and AMD sliding 9.3%. The Nasdaq-100 was on track to erase over $1 trillion in value, with combined losses from Amazon and Intel near $200 billion. Defensive sectors like consumer staples and healthcare rose, while the S&P 500 information technology index fell 3.4%. Alphabet extended losses after a record selloff, and Reddit slid 26% on weak user growth warnings.