Nvidia, AMD, and Intel stocks slide as Alphabet's AI costs spook investors

Nvidia, AMD, and Intel shares fell in premarket trading Thursday after Alphabet's results raised concerns about the rising costs of building artificial intelligence infrastructure. AMD dropped 3.3%, Intel lost 3.6%, and Nvidia fell 1%, while Nasdaq 100 futures declined 1.22%. Alphabet plunged over 10% after reporting a negative quarterly free cash flow of $9.07 billion, despite Google Cloud revenue doubling to $30.71 billion. Investors now question whether major chip customers can sustain record spending without sacrificing profitability, especially as Alphabet's third-quarter capital expenditures reached $51.36 billion. The selloff follows a broader decline in semiconductor stocks, with Morgan Stanley warning of further 10-15% downside. Upcoming earnings from Intel, AMD, and Nvidia will test Wall Street's concerns about AI spending sustainability.