US Stocks Tumble as Alphabet and Intel Plunge on Earnings

US stocks saw major turbulence this week as shares of Google parent Alphabet and Intel plunged following earnings reports, with Alphabet dropping 13 percent and Intel losing 30 percent at Friday's open. The selloff stems from massive investments in artificial intelligence, with Google, Amazon, Meta, and Microsoft spending 740 billion dollars this year on AI. Alphabet's decline erased over 500 billion dollars in market value as ad revenue growth around its search engine slowed, raising questions about whether AI models like ChatGPT will replace traditional search. Intel's collapse reflects declining PC sales, as companies prioritize AI investments over replacing computers and higher chip prices dampen demand. Despite the losses, Alphabet remains highly profitable, earning 200 billion dollars in the first nine months, though past success offers no guarantee for the future.