Amazon, Intel shares fall after earnings amid AI spending concerns
Intel shares dropped 29% following weak guidance and operational setbacks, while Amazon also saw a decline after reporting negative free cash flow. The broader tech sector faced a sell-off as investors expressed growing concerns over the high costs associated with artificial intelligence spending.
Why it matters
The market's reaction signals a potential shift in investor sentiment regarding the massive capital expenditures required for AI infrastructure.
Intel shares plummeted 29% on Friday, their worst day since the 1970s, after the chipmaker issued weaker-than-expected guidance due to a plant shutdown in Israel and ongoing softness in the PC market.
It's a major setback for CEO Lip-Bu Tan, who was hired in March 2025, and has since been on a campaign to revive the company after it missed out on the early years of the artificial intelligence boom.
Intel's plunge is also a big hit to the Trump administration, which led the U.S. government into taking a 10% stake in the company over a year ago. While it's still a profitable investment, the value of those holdings dropped by about $12 billion on Friday. Nvidia also took a big stake in Intel, and its stock dropped by about $6 billion in value.
Headlinne story · 4 newsrooms
Tech Stocks Slide Sharply as Artificial Intelligence Spending Sparks Market Jitters
What every outlet reported, where they differ, and how each framed it →
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10 other newsrooms covered this event. We read each version separately.
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