Nasdaq falls to nearly three-month low amid Amazon and Intel AI spending concerns

The US technology index Nasdaq Composite fell to its lowest level in nearly three months during trading on Friday, October 30. The decline reflected growing investor concerns about huge spending on artificial intelligence infrastructure and questions about when those investments will generate sufficient returns, Reuters reported.

Amazon and Intel intensified the pressure

Amazon reported substantial cash outflows in the third quarter and signaled that capital spending would continue to increase in 2027. Its shares fell by about 2% during the period covered by Reuters.

Intel warned of negative cash flow this year amid weaker demand for personal computers, manufacturing difficulties and investment spending. Its shares lost more than 30% during the session — a fall that could become the company's worst one-day drop on record as of the time of the report.

Technology stocks came under broad selling pressure

At 9:53 a.m. New York time, the Nasdaq Composite was down 2.21%, while the broader Standard and Poor's 500 index had fallen 1.22%. Chipmakers were also under pressure: Nvidia was down about 3%, and AMD had lost 9.3%. These were figures from trading in progress, not final closing prices.

Reuters noted that some capital was shifting toward more defensive sectors such as healthcare and consumer staples. At the same time, major technology companies continued to invest in data centres, equipment and computing capacity.

The key question remains the return on investment

The decline does not automatically mean demand for artificial intelligence technology is weakening. Rather, investors are reassessing the cost of building this infrastructure, how it will be financed, and when revenue from new services will justify the expense. The quoted prices are a snapshot from October 30 and may change before the close of trading.

Source: Reuters, October 30, 2026.

Illustrative photo: Umberto / Unsplash. The image shows an electronic circuit board, not a stock exchange or today's trading session.