Tech stocks slide as AI spending concerns deepen

Technology shares fell sharply in early trading Friday as weaker-than-expected results and forecasts from major companies intensified concerns about whether heavy artificial intelligence spending will generate adequate returns. The Nasdaq Composite dropped about 2.2% to 2.3%, while the Nasdaq 100 fell about 3% and was on course for a market-value decline exceeding $1 trillion. The figures were intraday estimates, not closing results. Intel shares plunged about 29% to 30% after the company forecast fourth-quarter sales and profits below expectations. Chief Executive Lip-Bu Tan cited manufacturing problems, supply shortages and a memory crunch, which he said had contributed to the company’s performance and constrained its ability to meet customer demand. Amazon also fell after reporting results that did not reassure investors. Chief Executive Andy Jassy said the company expected cash capital expenditures of about $220 billion in 2026, most of it for Amazon Web Services, and expected spending to be meaningfully higher in 2027. The company had already indicated that its 2026 spending would be substantially above 2025 levels. The selloff followed a steep drop in Alphabet shares on...