Alphabet, Google's parent company, slipped another 1.4% after a 12% drop Thursday. That slide took more than $500bn off its market value after the company revealed that the AI summaries it now shows as the top answer to search queries are hurting its core search advertising revenue. Alphabet still expects to spend up to $205bn this year, almost entirely on AI. Reddit and Amazon also fell, and the Nasdaq ended October with its worst monthly slide since March 2025.
Intel's drop followed its third quarter earnings report. Finance chief David Zinsner said the company does not expect to bring in more cash than it spends this year and forecast lower-than-expected fourth-quarter revenue. "We expect the PC slowdown to continue at least through the first half of next year," he said. Intel plans to raise AI spending anyway, even with weaker demand for computers, a major market for its microprocessors. Zinsner also said equipment investment jumped in the third quarter and he expects it to be "even more significant" over the next three months.
Investors are getting nervous. Tech earnings are not always meeting analysts' expectations, and that gap is feeding fears of an AI bubble. Meta, Alphabet, Oracle, Amazon and Microsoft have committed to spending $800bn between them in 2026.