US stocks opened sharply lower on Friday, driven by a tech sell-off as disappointing earnings from Amazon and Intel renewed concerns over massive AI spending.
Amazon and Intel shares tumbled after the companies posted their latest earnings reports.
Investors are nervous about the massive AI spending from the tech giants and whether that will pay off.
Amazon and Intel worsen the sell-off with disappointing earnings releases
Surging data-center spending, as highlighted in Amazon's massive cash burn, has turned once debt-light tech giants into major borrowers, while price hikes are squeezing global demand for devices
Intel has been a Wall Street darling this year due to its emergence as a player in AI, but the company is being weighed down by a struggling PC market.
Further downside is certainly possible, but selling now won't erase the losses we've taken.
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