{
  "id": 17243837,
  "title": "US tech stocks see sharp falls over AI cost fears",
  "url": "https://urgent.news/2026/10/30/us-tech-stocks-see-sharp-falls-over-ai-cost-fears-17243837",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-30T15:27:54.000Z",
  "source": {
    "name": "BBC Technology",
    "slug": "bbc-technology",
    "url": "https://www.bbc.co.uk/news/articles/cvwy72e0n72yo?at_medium=RSS&at_campaign=rss"
  },
  "original_language": "en",
  "account": "Overnight, US stocks experienced a significant decline as worries over the escalating expenses associated with the AI expansion intensified. Intel, a prominent chip manufacturer, saw its shares plummet by up to 30% in the early trading hours on Friday, following warnings of a weaker computer market despite plans to bolster AI investments. Amazon shares also plummeted by as much as 6% before recovering after reporting earnings that fell short of investor expectations. The tech-oriented Nasdaq stock market opened at its lowest point in over two months, dropping 2.5%, alongside other tech stocks such as Reddit and Roblox, which continued to experience losses.\n\nThe repercussions were felt across the tech industry, with Alphabet, the parent company of Google, experiencing a substantial drop of more than $500 billion in value on Thursday due to concerns that its AI-generated search summaries were damaging its core search advertising revenue. Google's stock continued its downward trend in early trading on Friday, slipping by 1%. Intel's financial performance further exacerbated the situation, with the company projected to lose over $130 billion in value, raising concerns over its earnings outlook. Intel's chief financial officer, David Zinsner, indicated in the company's third-quarter earnings report that it did not anticipate generating more cash than it spent in 2022 and predicted lower-than-expected revenue for the fourth quarter.\n\nLooking ahead, analysts expect the PC market slowdown to persist through the initial half of next year. During Intel's earnings call, Zinsner highlighted that the firm had considerably escalated equipment investments in the third quarter and anticipated even more significant spending in the upcoming three months. Reddit's stock suffered a 26% decrease after disclosing lower-than-expected daily user figures and warning that Google's AI-driven search was negatively impacting referral traffic. Roblox, an online game platform, also witnessed a decline, with shares falling by nearly 20% as its daily active user numbers dropped.\n\nSeveral major tech firms reported earnings during the week, prompting analysts to question the returns from substantial AI investments. Chris Low, a representative from FHN Financial, a prominent investment management firm, attributed the primary movement in the stock market to the reactions of major players like Amazon and Google, who were grappling with growing pains due to their aggressive push for AI development. Low informed Reuters that these signs suggested a slowdown across the entire sector.",
  "summary": "Shares in Intel have continued to fall while the tech-heavy Nasdaq opens at its lowest level in more than two months.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Slashdot",
        "title": "US Tech Stocks See Sharp Falls As AI Spending Nears $1 Trillion",
        "url": "https://urgent.news/2026/10/30/us-tech-stocks-see-sharp-falls-as-ai-spending-nears-1-trillion",
        "published": "2026-10-30T19:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}