Nasdaq futures tumble as Amazon, Intel results deepen AI spending woes
AMZN•Nasdaq futures fell 2.16% as Amazon signaled higher capital spending next year and Intel warned it would burn cash this year. Amazon shares fell 7.2% and Intel dropped 25% in premarket trading; the two companies could lose about $300 billion in market value if losses hold.
1. AI spending weighs on futures
Nasdaq futures fell more than 2% on Friday after Amazon signaled its AI spending boom was far from over and Intel warned it would burn cash this year, heightening concerns about the cost of AI infrastructure. S&P 500 futures fell 1% and Dow futures were down 0.05%.
2. Amazon and Intel slide
Amazon shares fell 7.2% in premarket trading after it reported a sharp third-quarter cash outflow and signaled another increase in capital expenditures next year. Intel dropped 25% after warning it would burn cash this year because of a weak PC market, manufacturing bottlenecks and heavy production-expansion spending. If losses hold, the two companies are poised to lose about $300 billion in market value.
3. Broader technology weakness
Alphabet slipped 0.9%, extending losses after a record selloff in the previous session. Nvidia fell 2.5%, AMD slid 7% and Broadcom lost roughly 4%. Investors have grown uneasy about the billions large technology companies are spending on AI infrastructure while awaiting evidence of stronger returns; some have tapped bond markets to finance the investments.
