AI spending nears $1 trillion. Wall Street is flinching.

Intel fell about 28% and chip stocks lost roughly $1T in a day, per estimates.

The Nasdaq closed 2.8% lower Friday and ended October with its worst monthly slide since March 2025, per BBC News. Intel gave a weaker-than-expected Q4 outlook: revenue of $15B-$16B against about $17B expected by analysts, according to TechCrunch. Tom's Hardware, citing intraday Benzinga estimates, reports roughly $1 trillion in semiconductor market cap was wiped out, with the PHLX Semiconductor Sector Index down 9.14% intraday as of 2:31 PM ET.

Other spending stories moved too. Per BBC News, Amazon revealed it spent more cash than it made and has committed $220bn this year to AI data centres, network equipment and servers; shares ended Friday down 1.4%. S&P Global Ratings revised Meta's outlook from AA- stable to AA- negative, citing elevated capex and negative free cash flow, per CNBC. A Meta spokesperson responded: "We respectfully disagree with S&P's assertion about Meta's AI monetization capabilities."

Per BBC News, Intel CFO David Zinsner said the PC slowdown should continue at least through the first half of next year. Tom's Hardware reports Intel expects the client PC market to decline 10% in 2027 versus 2026 and its data center business to keep growing in 2027.

The facts we checked

According to BBC News, Tom's Hardware, TechCrunch and CNBC

1. The Nasdaq closed 2.8% lower on Friday and ended October with its worst monthly slide since March 2025.Reported · BBC News
2. Intel shares fell about 28% on Friday after it gave a weaker-than-expected fourth-quarter outlook. Tom's Hardware puts the drop at 30%.Reported · BBC News, TechCrunch, Tom's Hardware
3. Intel guided fourth-quarter revenue to $15 billion to $16 billion; TechCrunch says analysts were looking for around $17 billion.Figure · Tom's Hardware, TechCrunch
4. Approximately $1 trillion in semiconductor market capitalization was wiped out on Friday, according to intraday estimates by Benzinga.Reported · Tom's Hardware
5. The PHLX Semiconductor Sector Index fell 9.14%, or 1,052.82 points, to 10,465.38 as of 2:31 PM ET on Friday.Figure · Tom's Hardware
6. Intel CFO David Zinsner: "Looking ahead, we see the PC slowdown continuing at least through the first half of next year."Quote · BBC News
7. Intel CEO Lip-Bu Tan said on the call: "Our customers began signaling a PC slowdown based on the memory prices and availability."Quote · TechCrunch
8. Intel expects the client PC market to decline 10% in 2027 compared with 2026, and expects its data center business to keep growing in 2027.Reported · Tom's Hardware
9. Amazon revealed on Thursday that it spent more cash than it was making, and that spending had increased six-fold over three months. Its shares ended Friday down 1.4%.Reported · BBC News
10. Amazon has committed to spending $220bn this year on investments such as AI data centres, network equipment and servers.Figure · BBC News
11. S&P Global Ratings revised Meta's credit outlook from AA- stable to AA- negative on Friday, citing elevated capex and negative free cash flow.Fact · CNBC
12. S&P said: "it is unclear when these revenue streams will generate material contributions that exceed their rising costs over the next few years."Quote · CNBC
13. Meta said it expects full-year capex of $135 billion to $145 billion and posted negative free cash flow of $2.12 billion in its third-quarter report.Figure · CNBC
14. A Meta spokesperson responded: "We respectfully disagree with S&P's assertion about Meta's AI monetization capabilities."Quote · CNBC

Sources

• BBC NewsUS tech stocks see sharp falls as AI spending nears $1tn
• Tom's HardwareIntel’s woes wipe out $1 trillion of semiconductor market cap in one day — PC market bloodbath leaves few chip stocks unscathed
• TechCrunchIntel’s stock crashes, knocking $12B from government’s stake
• CNBCMeta outlook revised downward by S&P on cash flow and capex concerns
• TechCrunchCracks are emerging in the AI spending boom
• The New York TimesBig Tech’s Data Center Blitz Is Burning Through Cash and Scaring Wall St.