US tech stocks fell for a second straight day as investors reacted to heavy artificial intelligence spending by major firms. Intel shares dropped 28% on Friday, according to the report. Alphabet, Google's owner, fell 1.4% on Friday after a 12% plunge on Thursday.
The Nasdaq index of the largest US-listed tech firms had its worst monthly slide since March 2025, the report says.
The report says Meta, Alphabet, Oracle, Amazon and Microsoft have committed to spending $800bn between them in 2026. Alphabet expects to spend up to $205bn this year, almost entirely on AI-related investments.
Alphabet's market value fell by more than $500bn on Thursday after the company said its AI summaries, now the top answer to many search queries, were affecting its core search advertising revenue.
Intel shed more than $130bn in value on Friday. The chip maker 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.
Amazon said it spent more cash than it made, and its spending rose sixfold over three months. The company has committed $220bn this year to areas including AI data centres, network equipment and servers. Its shares were down 1.4% at the end of Friday trading.
Reddit stock fell 29%. The social media platform reported weaker-than-expected daily user figures and warned that Google's growing AI-driven search was hurting referral traffic. Roblox fell 18% after its daily active user numbers dropped.
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."
Stock values for many of these companies remain above their levels a year ago. The Nasdaq is up 7.8% over the last year, Amazon is up nearly 8%, and Alphabet is down 1.3%.