Nasdaq hits two-month low as Amazon and Intel fuel AI spending fears

The Nasdaq Composite fell 2.26% at Friday's open, hitting its lowest level in over two months, as Amazon's aggressive AI spending plan and Intel's cash burn warning deepened investor concerns about escalating infrastructure costs and delayed returns. Intel tumbled 25% in premarket trading on a bleak outlook, with CEO Lip-Bu Tan's turnaround effort facing a prolonged PC slump alongside heavy AI and manufacturing investments. Semiconductor stocks, including Nvidia, AMD, and Qualcomm, fell 2% to 9%, while server makers like Dell and Hewlett Packard Enterprise dropped 6% to 12%. The Dow Jones rose 0.08% and the S&P 500 gained 1.16%, contrasting with the tech sell-off. Analysts described a "sell first, ask questions later" market mood, with investors using Intel's warning as an excuse to reduce exposure across chip and AI supply chain stocks.