‘Tech carnage’: AI stocks plunge as investors spooked by gloomy earnings

The global tech sell-off deepened on Friday after a string of heavily disappointing earnings revived fears over the pace and scale of AI spending. The Nasdaq Composite Index plunged 2.2 per cent at the open on Friday after a $500bn rout in Google-owner Alphabet s shares on Thursday. Roughly $3 trillion has been wiped off the tech-heavy index since its peak on 6 October. Chipmaker Intel’s gloomy forecast of lower than expected revenue driven by a persistent PC market slump and supply chain issues, had a chilling effect, as shares plunged more than 28 per cent on market open. Investors were also spooked by Amazon’s results following market close on Thursday, as the e-commerce giant recorded weaker than expected sales and gave a lacklustre outlook for its retail operation. Amazon’s shares tumbled 2.7 per cent, which analysts said showed investors are expecting a “bleak Christmas period ahead”. Neil Wilson, UK investor strategist at Saxo, said the sell-off showed “tech carna