Tech stocks face sharp declines

Major technology companies, including Intel, Amazon, and Alphabet, have seen significant drops in their stock prices. On Thursday, October 29, Alphabet’s shares fell by 13%, while Intel’s stock plummeted nearly 30%, and the overall market capitalization loss for these companies reached approximately $500 billion—the worst decline since January 2025.

Nasdaq and other indices fall sharply

The American stock market experienced a turbulent session on Friday, October 30, with the Nasdaq, S&P 500, and Dow Jones indices all declining. The Nasdaq dropped about 2.5%, while the S&P 500 and Dow Jones fell by 1.6% and 0.7%, respectively, marking the worst day for the Nasdaq since June.

Intel’s struggles intensify

Intel is among the hardest-hit companies, with its stock dropping nearly 30% after disappointing forecasts and concerns about its cash flow. The company expects a 5% decline in its PC market over the past year and a 9% drop compared to the previous quarter, with further declines anticipated in the fourth quarter.

Amazon’s AI investments drain cash

Amazon’s stock fell by 2% as its investments in artificial intelligence are consuming more cash than it generates. The company plans to spend $220 billion on infrastructure by 2026, and its available cash flow has turned negative, despite strong performance from its Amazon Web Services division, which contributes significantly to its operating income.

Alphabet faces similar cash flow challenges

Alphabet, the parent company of Google, also saw its stock drop due to negative available cash flow. The company generated $42.3 billion in operating cash flow in the third quarter but spent $51.4 billion on investments, primarily in AI infrastructure, resulting in a deficit of $9.1 billion.

Microsoft shows resilience

Microsoft’s stock remained relatively stable after its quarterly results were released on October 28. The company reported revenue of $92.3 billion, a 19% increase, and a net profit of $36.6 billion, up 32%. However, its Windows and devices division saw a 22% decline in revenue, and its operating cash flow surplus decreased by 27% compared to the previous year.

Investors question AI spending

The pressure from rising interest rates is increasing concerns about the financing of AI infrastructure and data centers. While technology stocks are struggling, energy companies like ExxonMobil and Chevron, along with some consumer stocks, are performing better, signaling a shift in investor capital. The upcoming financial reports, including those from NVIDIA, will be crucial in determining whether the market correction continues or if confidence is restored.