US tech stocks see sharp falls as AI spending nears $1tn

Tech stocks tumbled for the second day in a row as concerns rise over the hundreds of billions of dollars firms are investing in artificial intelligence (AI).

Shares in Intel plummeted by 28% on Friday, while Google owner Alphabet saw its stock price continue to fall another 1.4% after a 12% plunge on Thursday.

Other tech stocks, including Reddit and Amazon also fell, while the Nasdaq index of the largest tech firms listed in the US, ended October with its worst monthly slide since March 2025.

While tech firms are spending big on AI, their earnings are not always meeting analysts' expectations, spooking investors and creating fears of an AI bubble.