US stocks tumbled on Friday, with the Nasdaq plunging to a three-month low following disappointing quarterly results from Intel and Amazon, which amplified growing fears surrounding AI-related companies’ massive spending on the nascent technology, and concerns about when or whether the cash burn will start to pay off.
All three major US stock indexes slumped, with the Nasdaq sliding 3.4 per cent. The tech-heavy index has dropped more than 8 per cent from its all-time closing high reached on October 6.
The tech rout was sparked by disappointing quarterly results from Intel and Amazon released late on Thursday. The companies’ shares slumped 2.1 per cent and 30.9 per cent, respectively.
Chip stocks veered sharply lower, with Nvidia (NVDA.O), down 5.3 per cent, and AMD (AMD.O), sliding 12.1 per cent. The broader chips index (.SOX), shed 8.7 per cent and was headed for a monthly loss. Server makers Dell and HP lost 12.5 per cent and 10.8 per cent, respectively.
Amazon and Intel were set to wipe out nearly $200 billion in combined market value if losses hold, setting up the Nasdaq-100, to erase over $1 trillion on Friday.
