US tech stocks slide as AI spending costs spook investors
US tech stocks fell sharply on Friday, with Intel plunging up to 30% and the Nasdaq opening at its lowest level in over two months, driven by intensifying concerns over the rising costs of artificial intelligence (AI) build-out. Intel's slide followed its earnings warning of a weaker computer market and increased AI spending, while Amazon shares dropped up to 6% after missing earnings expectations. Alphabet continued falling after losing over $500bn on Thursday, with other tech firms like Reddit and Roblox also declining. Analysts noted questions about returns on massive AI investments, with FHN Financial's Chris Low saying major players are showing "significant growing pains" that suggest the entire sector may slow down.