Business · 2026-10-31 · Afternoon briefing
US tech stocks slide on AI spending anxiety
US technology stocks tumbled for a second consecutive day as investors grew anxious about the colossal sums being spent on artificial intelligence. Chip-maker Intel’s shares plummeted 28% on Friday, wiping out over $130bn in market value. Alphabet, Google's parent, fell another 1.4% after a 12% plunge on Thursday erased more than $500bn from its valuation.
The sell-off follows revelations of staggering investment plans. Five tech giants—Meta, Alphabet, Oracle, Amazon, and Microsoft—have committed to spending a combined $800bn on AI by 2026. Alphabet's drop was triggered by concerns that its new AI-driven search summaries are cannibalising core advertising revenue. Intel plans to increase AI spending despite forecasting weaker revenue amid a PC market slowdown.
The contagion spread to other firms, with Reddit’s stock plunging 29% after it warned Google’s AI search was hurting its traffic. Despite the correction, which saw the Nasdaq close down 2.8%, the index remains up 7.8% over the past year. Amazon's stock is also up nearly 8% in the same period; Alphabet's is down 1.3%.
Summary written by Cup of News with AI from the sources below. Check the originals for the full story.
Read the sources
- US tech stocks see sharp falls over AI cost concerns
- Tech stocks wipe out $1 trillion in value as concerns deepen about the AI boom
- Zeta Global and Commerce stocks trade down, what you need to know
- US markets hit Nasdaq plunges over 2% as AI spending concerns rattle investors, Meta slides 5%
- Nasdaq Falls to 26,140.03 as the AI Sell-Off Deepens and Chip Stocks Extend Their Slide
Ten stories, twice a day. Calm, no notifications.
Get the appMore stories in this edition
- Ceasefire allows civilians to leave occupied Ukrainian city
- Qatari mediators in Tehran seek to revive direct US-Iran negotiations
- Germany's Merz surprised by Asian anger over EU car plan
- New 'Volta' malware uses AI to auto-profile victims
- Africa's $1.4tn mobile money economy faces AI threat
- Thai lawyer's sentence for royal critique exceeds 34 years
- Atlas Sound returns with first new song in 15 years
- Global eating disorders up 71% as new drugs add to risks
- African Horse Sickness confirmed in South Africa's Western Cape