US tech stocks see sharp falls over AI cost fears
What happened
Tech stocks fell sharply for a second day, with Intel dropping 28% and Alphabet sliding another 1.4% after a 12% plunge, while the Nasdaq ended October with its worst monthly slide since March 2025. Companies are spending heavily on AI, with firms like Meta, Alphabet, Oracle, Amazon and Microsoft committing $800 bn in 2026, but earnings are missing expectations, sparking fears of an AI bubble.
Why it matters
The steep declines show investor concern that massive AI spending may not translate into near‑term profits, raising doubts about the sustainability of current valuations.
Is this a big deal?
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