Technology shares slid again on Friday, October 30, 2026, after Amazon and Intel reported results that worried investors about how much money big tech companies are spending on artificial intelligence. Amazon shares were down about 7.2 percent in premarket trading, Intel fell about 25 percent, and Nasdaq 100 futures dropped more than 2 percent, according to Reuters.
What happened
Amazon reported a sharp cash outflow in the third quarter and signaled another increase in capital spending next year, on top of already high spending. Investors read that as a sign the AI building boom is far from over, and that the costs will stay high for longer.
Intel warned it would burn cash this year, pointing to a weak PC market, manufacturing bottlenecks, and heavy spending to expand production. Its shares plunged about 23 percent in after-hours trading on Thursday and about 25 percent in premarket trading on Friday.
Together, Amazon and Intel were set to lose about 300 billion dollars in market value if those moves held.
The fall came a day after Alphabet, the parent company of Google, suffered a record selloff when its own results showed heavy AI spending pushing its cash flow into negative territory. Chipmakers across Asia also fell sharply, and the MSCI Asia Pacific Index dropped 0.3 percent.
As investors moved toward safer assets, bond prices rose and haven currencies strengthened. This is a pattern seen in the earlier tech selloff earlier in the week, when technology shares also fell after central banks held interest rates steady.
Why it matters for beginners
Earnings reports tell investors whether a company’s spending is turning into profit. When spending rises faster than profit, share prices can fall, even for large and well known companies.
A selloff in a few big technology names can move whole stock indexes, because those companies carry a heavy weight in the indexes many people follow.
Premarket moves are not final closing prices. Trading before the regular session opens can be thinner and more volatile, so prices can change once regular trading begins.
A falling share price does not by itself mean a company is failing. It often means investors have changed their view of how fast profits will arrive.
What to watch next
Watch whether Amazon and Intel recover part of their falls or extend them in regular US trading on Friday.
Watch results from other big technology companies, and any update on their AI spending plans.
Watch next week’s US jobs data and the Bank of England rate decision, which could shift expectations for interest rates.
Frequently asked questions
Question: What is premarket trading? Answer: It is trading that happens before the regular stock market session opens. Prices can move a lot in this period because fewer shares change hands.
Question: Does this mean artificial intelligence is failing? Answer: No. It means investors are asking tougher questions about how much the AI buildout costs and how soon it will turn into reliable profit.
Question: Why did Intel fall more than Amazon? Answer: Intel warned it would burn cash this year and pointed to weak PC demand and factory problems, while Amazon’s worry was mainly about rising spending. Different problems can lead to different sized falls.
Question: What is a futures contract? Answer: A futures contract is an agreement tied to the future value of an index. When Nasdaq 100 futures fall, it signals that investors expect the tech heavy index to open lower.