Intel shares plunge as AI spending doubts hit tech stocks

· Tech · United States · Japan

Intel shares sank more than 20% at one point, with CNBC reporting a 29% plunge, as a PC slowdown stretches into 2027 and doubts about heavy artificial intelligence spending hit technology stocks. Analysts urged caution on buying the dip, saying investors need a long horizon. The selloff followed earnings from technology giants that reignited fears about the scale of AI capital spending, pushing the Nasdaq to its first three-week losing streak since March. S&P Global Ratings revised Meta's outlook downward on cash flow and capital expenditure concerns. Yen bond offerings hit a record $16 billion as the AI funding race reached Japan.

Why it matters：Investors are starting to question whether AI spending will pay off, and the resulting repricing of chipmakers and Big Tech can ripple through global markets and corporate investment plans.

Key points

  • Intel shares fell more than 20%, with CNBC reporting a 29% drop.
  • The Nasdaq posted its first three-week losing streak since March.
  • S&P cut its outlook on Meta over cash flow and capex concerns.

Sources (original reporting)

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