The Nasdaq faced renewed pressure on Friday (October 30), falling to its lowest level in nearly three months. Concerns regarding the high costs of building AI infrastructure have resurfaced after Amazon signaled an increase in capital expenditures for next year, while Intel warned of negative cash flow driven by a weak PC market, production constraints, and heavy spending to expand capacity.
The chip sector bore the brunt of the pressure. Intel shares plummeted nearly 29%, while Nvidia fell 3.7% and AMD dropped by approximately 10%. The semiconductor index slid about 7%, with Dell and HP declining by more than 10% and 8%, respectively. This trend suggests that investors are beginning to question how quickly AI investments will yield returns.
If the weakness persists, Amazon and Intel could see nearly US$200 billion in market capitalization wiped out. Meanwhile, the Nasdaq-100 is at risk of losing over US$1 trillion in a single session and is on track for a decline exceeding US$2 trillion for the month of October. These concerns were further compounded by a sell-off in Alphabet shares during the previous session.
As of 11:52 a.m. U.S. time, the Dow Jones was down 0.71% at 51,968.84, the S&P 500 had weakened 1.56% to 7,600.19, and the Nasdaq Composite had plunged 2.48% to 25,533.95. Investors have shifted toward defensive sectors, such as consumer staples and healthcare, while energy stocks found support following better-than-expected performance from Chevron and Exxon Mobil.