Nasdaq futures tumble as Amazon, Intel results deepen AI spending woes
QQQ•Nasdaq futures fell 2.16% as Amazon’s higher expected capital spending and Intel’s warning of cash burn this year intensified concerns about AI investment costs. Amazon shares fell 7.2% and Intel dropped 25% in premarket trading.
1. AI spending concerns deepen
Nasdaq futures tumbled more than 2% on Friday after Amazon signaled another increase in capital expenditures next year and Intel warned it would burn cash this year. The concerns added to investor unease about the cost of expanding AI infrastructure and the pace of returns.
2. Stocks and futures fall
Amazon shares fell 7.2% in premarket trading after reporting a sharp third-quarter cash outflow. Intel dropped 25% after citing a weak PC market, manufacturing bottlenecks and heavy production-expansion spending. At 4:04 a.m. ET, Dow futures were down 0.05%, S&P 500 futures 1% and Nasdaq 100 futures 2.16%.
3. Other technology shares slide
Alphabet shares slipped 0.9%, extending losses after a record selloff in the prior session. Nvidia fell 2.5%, AMD slid 7% and Broadcom lost roughly 4%. Amazon and Intel were poised to lose about $300 billion in combined market value if their declines held.
