Nasdaq 100 drops 3.5% as AI spending fears hammer tech stocks
What's new: Intel sank about 29% and Alphabet's record slide deepened as investors questioned whether huge AI outlays can pay off.
US tech stocks sold off for a second straight session Friday as investor enthusiasm for artificial intelligence gave way to concern over how long companies can fund massive spending while their core businesses weaken. The Nasdaq 100 fell 3.5%, its worst month since March 2025, while the S&P 500 lost 1.8%. Intel posted its biggest one-day drop on record, falling about 29% after a weak revenue outlook tied to soft PC demand and supply-chain issues in data-center components. Alphabet extended a record post-earnings slump after reporting search and advertising growth that sharpened worries AI products are cutting into its main revenue engine. Amazon, Reddit, Roblox, AMD, Nvidia and Dell also fell.