US tech stocks fell for a second day as investors reacted to heavy spending on artificial intelligence. Shares in Intel dropped 28% on Friday, according to the report. Alphabet, Google's parent company, fell another 1.4% after a 12% plunge on Thursday.
The Nasdaq index of the largest US tech firms ended October with its worst monthly slide since March 2025, the report says.
Alphabet's market value lost more than $500bn on Thursday after the company said its AI summaries, now shown as the top answer to search queries, were affecting its core search advertising revenue. The report says Alphabet expects to spend up to $205bn this year, almost entirely on AI.
Intel shed more than $130bn in value on Friday. The chipmaker said it plans to increase AI spending despite weaker demand for computers. Finance chief David Zinsner said the firm did not expect to bring in more cash than it spent this year. He also forecast lower-than-expected revenue for the fourth quarter. "Looking ahead, we see the PC slowdown continuing at least through the first half of next year," he said in the company's third-quarter earnings report.
Amazon said its spending exceeded its cash income, and that spending rose sixfold over three months. The company has committed $220bn this year to projects including AI data centres, network equipment and servers.
Reddit shares fell 29% after the platform reported weaker-than-expected daily user figures. It warned that Google's growing AI-driven search was reducing referral traffic. Roblox shares fell 18% as its daily active user numbers dropped.
The report says Meta, Alphabet, Oracle, Amazon and Microsoft have committed to spending $800bn between them in 2026.
Chris Low of FHN Financial told Reuters that the companies were "showing some pretty significant growing pains as they aggressively pursue the AI build-out." Kathleen Brookes of XTB said investors "have turned ruthless, punishing any signs of disappointment in [third quarter] earnings."
Many analysts have debated whether AI stocks are in a bubble, the report says. Despite the recent falls, the Nasdaq is up 7.8% over the past year, and Amazon is up nearly 8%. Alphabet is down 1.3% over the same period.