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US stocks have continued to slide as concerns continue to intensify over the increasing costs of the artificial intelligence (AI) build out.
Shares in Intel continued their overnight slide into early trading on Friday, falling as much as 30% after the chip maker warned of a weaker computer market even as it plans to increase spending on AI.
Amazon shares fell as far as 6% before recovering after its reported earnings on Thursday evening fell short of investors’ expectations.
The tech-heavy Nasdaq stock exchange opened on Friday at its lowest level in more than two months, down 2.5%, as other tech stocks including Reddit and Roblox continued to fall.
The losses follow the value of Google owner Alphabet plunging by more than $500bn on Thursday after it revealed its own AI summaries were affecting its core search advertising revenue.
Alphabet stock continued to fall in early trading, down 1% after Thursday’s massive slide.
The bigger losses on Friday were elsewhere, with Intel on track to lose more than $130bn in value after its earnings update rattled investors.
On Thursday, Intel’s finance chief David Zinsner said the firm did not expect positive cash flow this year, and forecast lower-than-expected revenue for its fourth quarter.
“Looking ahead, we see the PC slowdown continuing at least through the first half of next year,” he said in the chip maker’s third quarter earnings report.
In the earnings call, he said the firm had significantly ramped up investment in equipment in the third quarter and expected that to be “even more significant” in the following three months.
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