AI Spending Fears Drive Global Tech Selloff

Technology stocks sold off sharply as investors questioned whether massive AI infrastructure spending will deliver returns quickly enough. The Nasdaq 100 fell about 3% Friday and was down more than 5.8% for October, putting over $2 trillion in market value at risk. Amazon missed revenue and earnings expectations and reported negative free cash flow, with quarterly capital expenditure above $77 billion; it reaffirmed roughly $220 billion in 2026 spending, while CEO Andy Jassy said investment would rise further in 2027 and pointed to AWS demand as a path to returns. Intel plunged 29% after issuing a disappointing outlook, while Alphabet’s record one-day decline and Meta’s planned $97.5 billion fundraising added to concerns about cash burn, borrowing and shareholder dilution. Microsoft and SpaceX offered examples of returns from AI investments, but investors increasingly want evidence that spending can generate durable revenue, margins and cash flow, as slowing profit growth and higher financing costs weigh on the outlook.