Why It Matters
Technology stocks declined for a second consecutive day on October 30 as investors questioned whether the returns from large artificial-intelligence investments will justify the spending. The selloff came as five major companies committed a combined $800 billion to AI-related spending in 2026.
What Happened
Intel shares dropped 28% on Friday after the company forecast fourth-quarter revenue below expectations and said weaker computer demand would continue. Intel finance chief David Zinsner said, “Looking ahead, we see the PC slowdown continuing at least through the first half of next year.”
Intel also planned to increase AI spending despite the weaker PC market. The company lost more than $130 billion in value during Friday’s trading.
Alphabet shares fell 1.4% Friday after dropping 12% Thursday. The company lost more than $500 billion in market value after reporting that AI-generated search summaries were affecting revenue from its core search advertising business. Alphabet expects to spend up to $205 billion on investments this year, almost entirely on AI.
Amazon shares declined 1.4% by the end of Friday trading. The company has committed $220 billion to investments this year, including AI data centers, network equipment and servers. Amazon’s spending increased six-fold over three months.
Reddit shares fell 29% after the company reported weaker-than-expected daily user figures and warned that Google’s AI-driven search was reducing referral traffic. Roblox shares dropped 18% as its daily active users declined.
Microsoft was among the major technology companies reporting earnings during the week. Meta, Alphabet, Oracle, Amazon and Microsoft have committed to the combined 2026 AI spending figure.
By the Numbers
28% — Intel share decline on Friday
1.4% — Alphabet share decline on Friday
12% — Alphabet share decline on Thursday
$800 billion — Combined 2026 AI spending committed by Meta, Alphabet, Oracle, Amazon and Microsoft
More than $500 billion — Alphabet market-value loss
$205 billion — Alphabet’s expected investment spending this year
More than $130 billion — Intel value loss on Friday
$220 billion — Amazon’s committed spending this year
29% — Reddit share decline
18% — Roblox share decline
2.8% — Nasdaq decline at Friday’s close
7.8% — Nasdaq increase over the last year
Zoom Out
The Nasdaq recorded its worst monthly decline since March 2025, although it remained up 7.8% over the previous year. Amazon was up nearly 8% over the same period, while Alphabet was down 1.3%.
The market reaction followed questions from analysts about the financial returns from the technology industry’s AI build-out. Chris Low of FHN Financial said companies were “showing some pretty significant growing pains as they aggressively pursue the AI build-out.”
What’s Next
Intel expects the PC slowdown to continue through the first half of next year. The company significantly increased equipment investment during the third quarter and expects that spending to become more significant over the following three months.
Kathleen Brookes said November is typically a strong month for stocks, as investors assess the technology companies’ earnings and spending plans.