AI stocks reel after tech giants' spending binge rattles investors
QQQ•QQQ•QQQ•QQQ•AI-linked stocks fell in premarket trading after results from Intel, Amazon and Alphabet rekindled concerns about spending. Intel fell 25.89%, while Amazon dropped 6.81% and chip and server stocks also declined.
Intel fell 25.89% after a weak forecast, putting it on track to lose more than $120 billion in value. Nvidia dropped 2.94%, AMD fell 8.24%, Micron lost 5.47%, SanDisk retreated 8.42% and Arm Holdings fell 9.08%; the Philadelphia SE Semiconductor Index was headed for its biggest monthly drop since July.
CoreWeave sank 7.21%, while Nebius and IREN fell 7.49% and 6.70%, respectively. Server makers Dell, Super Micro and Hewlett Packard declined between 5.94% and 12.07%.
Amazon fell 6.81% after a downbeat fourth-quarter revenue forecast and heavy third-quarter cash burn, leading losses among the Magnificent 7. Alphabet dropped 1%, while Oracle fell 3.85%. Dan Coatsworth of AJ Bell said investors were using the “sell” button to signal that it might be time for the tech sector to “play it cool.”
