Nasdaq hits near three-month low as Amazon, Intel deepen AI capex concerns
QQQ•The Nasdaq fell 2.21% to its lowest in nearly three months as Amazon’s spending plans and Intel’s cash-burn warning heightened concerns over AI infrastructure costs. Intel fell more than 30%, while the S&P 500 lost 1.22% and the Dow fell 0.39%.
1. AI spending worries weigh
The Nasdaq tumbled to its lowest level in nearly three months after Amazon’s AI spending plan and Intel’s cash-burn warning added to concerns about the cost of AI infrastructure and the timeline for returns. Amazon slipped 2% after reporting a sharp third-quarter cash outflow and signaling another increase in capital expenditure next year.
2. Intel shares plunge
Intel fell more than 30% after warning it would burn cash this year, citing a weak PC market, manufacturing hurdles and heavy spending to expand production. The decline rippled through chip and server stocks: Nvidia fell 3%, AMD lost 9.3%, and Dell and HP each dropped about 9%.
3. Indexes and sectors diverge
At 9:53 a.m. ET, the Nasdaq Composite was down 2.21%, the S&P 500 had lost 1.22% and the Dow was down 0.39%. The S&P 500 information technology index fell 3.4%, while consumer staples and healthcare indexes rose 1.9% and 1.7%, respectively. Alphabet slipped 1.2% after a record selloff in the previous session; Chevron and Exxon Mobil rose after beating third-quarter profit estimates.
