Tech selloff deepens as Intel drops 28% and AI spending fears grow
What's new: The Nasdaq logged its worst monthly decline since March 2025 as investors questioned returns on hundreds of billions in AI spending.
Tech stocks fell for a second straight day Friday, with Intel plunging 28% and shares of Amazon, Alphabet, Reddit and Roblox also sliding as investors recoiled from mounting AI costs and softer-than-expected results. In Europe, the Stoxx 600 slipped 0.25% and the region's technology sector lost 2%, though the broader index was still on track for weekly and monthly gains. The latest pressure followed earnings that renewed doubts about whether massive outlays on data centers, servers and other AI infrastructure will pay off soon enough. Alphabet has said AI search summaries are cutting into its core search advertising business, while Amazon disclosed sharply higher capital spending.