Tech stocks set to wipe out more than $1 trillion as concerns deepen about the AI boom

Tech stocks plunged Friday morning, putting the Nasdaq 100 on track for a more than $1 trillion drop, its worst one-day decline since mid-June. The sell-off was sparked by disappointing quarterly earnings from Amazon and Intel. Amazon fell 3% after reporting slower core shopping growth and plans to significantly increase AI-related capital expenditures, with CEO Andy Jassy warning of approximately $220 billion in 2026 capex and more in 2027. Intel plummeted 30% after issuing weak fourth-quarter guidance, citing supply chain issues and a memory crunch. The broader S&P 500 fell over 1.2%, with its tech sector down more than 3.5%. The Philadelphia semiconductor index sank 6%. The declines follow Thursday's massive sell-off in Alphabet shares, which lost about $500 billion in market value—its worst day ever. Investors are increasingly skeptical about whether the enormous spending on AI infrastructure and models will deliver returns. As a side effect, U.S. Treasurys rallied, with the 10-year yield falling from just under 5% to around 4.89%, as tech companies' heavy borrowing for AI data centers has created competition for capital.

(Source：NBC News)