US tech stocks see sharp falls over AI cost fears
US tech stocks experienced significant declines as investors grew concerned over the massive capital expenditure required for AI development. Major firms like Intel and Alphabet saw sharp drops as earnings failed to justify the high costs of AI infrastructure.
Why it matters
Signals a potential market correction or 'AI bubble' as the financial returns on massive AI investments remain uncertain.
Image source, Michael Nagle/Bloomberg via Getty Images By Rachel Clun Business reporter , Reporting from New York Published 30 October 2026, 14:50 GMT Updated 13 minutes ago Tech stocks tumbled for the second day in a row as concerns rise over the hundreds of billions of dollars they are investing in artificial intelligence (AI).
Shares in Intel plummeted by as much as 30% following Google owner Alphabet's stock price plunging by more than $500bn (£374bn) in the previous day's trading.
Other tech stocks including Reddit and Amazon also fell while the Nasdaq index of the largest tech firms listed in the US sank over 3.5%.
While tech firms as spending big on AI, some of their earnings are not meeting analysts' expectations, spooking investors and creating fears about a potential AI bubble.
Headlinne story · 4 newsrooms
Tech Stocks Slide Sharply as Artificial Intelligence Spending Sparks Market Jitters
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