Key facts
- Tech stocks plunged Friday, with the Nasdaq Composite down 2.3%.
- Intel shares dropped nearly 29% after reporting lower-than-expected profits and sales.
- Alphabet shares fell more than 12% on Thursday and continued to slide Friday.
- Amazon shares declined 3% after its earnings report showed increased AI spending and slowing e-commerce growth.
- The tech sector was the worst performing part of the S&P 500, tumbling more than 3.5%.
Global technology stocks experienced a significant sell-off on Friday, with the Nasdaq Composite Index falling 2.3% in early trading. This decline was triggered by a series of disappointing earnings reports from major tech companies, including Alphabet, Amazon, and Intel, reigniting concerns about the profitability of massive investments in artificial intelligence. Intel's shares plummeted nearly 29% at the open, while Alphabet's stock continued its downward trend after a substantial drop on Thursday. Market analysts described the current earnings season as one of the worst in recent memory for the tech sector. Investors are increasingly worried about the sustainability of the debt being taken on by companies to finance AI-related capital expenditures, questioning whether the anticipated returns will materialize.