US tech stocks see sharp falls over AI cost fears

What the report says

US technology shares fell sharply on Friday as investors grew more concerned about the cost of building out artificial intelligence systems and the near-term payoff from that spending, BBC World News reported. The Nasdaq opened at its lowest point in more than two months, reflecting broad pressure across major tech names in New York trading.

Intel was among the worst hit, with its shares falling heavily after the chipmaker warned that the computer market remains weak even as it plans to spend more on AI infrastructure. BBC said the company’s finance chief signaled lower revenue expectations and indicated that capital spending would rise further in the coming months. Amazon also dropped after earnings failed to meet expectations, while Alphabet extended losses following a large one-day market-value decline linked to worries that its AI-generated search summaries could affect advertising revenue.

Other internet and platform companies were also hit. Reddit shares sank after the company reported weaker-than-expected user figures and said Google’s AI-related search changes were reducing referral traffic. Roblox also fell after reporting lower daily active users. The BBC report said analysts are increasingly questioning whether the heavy AI investment now being made by large technology firms will produce quick enough returns, a concern that is spilling over into the wider sector and weighing on market sentiment.