Tech stocks fall as AI jitters scare investors A growing sell-off in tech stocks is revealing how much of the markets' recent record streak was built on faith in artificial intelligence, and how quickly that faith can waver when the numbers stop adding up. The S&P 500 index fell 1.8% on Friday, its worst day since June, and closed a third straight losing week, the WSJ reports. Intel plunged nearly 29%, its worst one-day decline since 1974, after its profit forecast missed expectations. The chipmaker warned it may struggle to generate positive free cash flow next year as demand for AI hubs pushes up PC prices and its spending plunged 12.6% in its worst day on record, wiping about $500 billion off its market value, after it reported that its AI investments were burning through cash faster than expected Nvidia, the poster child for the AI boom, fell At 4.2%, it briefly relinquished its position as the world's most valuable company to Apple. Amazon fell after revealing that it spent nearly $95 billion on property and equipment, mainly artificial intelligence infrastructure, and burned through $42 billion in free cash flow in the past year. the expenses. As one portfolio manager put it, the market is moving "from the hopes and dreams phase of AI trading to the 'show me' phase." “Investors are now demanding evidence that capital expenditure translates into revenue, not just capacity. Anxiety is heightened by the political calendar. Tuesday's midterm elections loom, and President Trump has historically treated the stock market as a scoreboard for his own success. Worries about artificial intelligence are already cutting across party lines, and a market that remains just 3.1% below its all-time high could still become a liability if the slide continues.

Tech stocks fall as AI jitters scare investors A growing sell-off in tech stocks is revealing how much of the markets' recent record streak was built on faith in artificial intelligence, and how quickly that faith can waver when the numbers stop adding up. The S&P 500 index fell 1.8% on Friday, its worst day since June, and closed a third straight losing week, the WSJ reports. Intel plunged nearly 29%, its worst one-day decline since 1974, after its profit forecast missed expectations. The chipmaker warned it may struggle to generate positive free cash flow next year as demand for AI hubs pushes up PC prices and its spending plunged 12.6% in its worst day on record, wiping about $500 billion off its market value, after it reported that its AI investments were burning through cash faster than expected Nvidia, the poster child for the AI boom, fell At 4.2%, it briefly relinquished its position as the world's most valuable company to Apple. Amazon fell after revealing that it spent nearly $95 billion on property and equipment, mainly artificial intelligence infrastructure, and burned through $42 billion in free cash flow in the past year. the expenses. As one portfolio manager put it, the market is moving "from the hopes and dreams phase of AI trading to the 'show me' phase." “Investors are now demanding evidence that capital expenditure translates into revenue, not just capacity. Anxiety is heightened by the political calendar. Tuesday's midterm elections loom, and President Trump has historically treated the stock market as a scoreboard for his own success. Worries about artificial intelligence are already cutting across party lines, and a market that remains just 3.1% below its all-time high could still become a liability if the slide continues.